Egypt Approves 2023/24 Budget with Target Growth of 4.1%

The Egyptian Cabinet approved the budget for the next fiscal year 2023/24, which was reviewed by Mohamed Maait, Minister of Finance, during Wednesday's cabinet meeting.

The Minister of Finance said that the target growth rate in the budget for the new fiscal year (2023/24) was estimated at 4.1%, in light of the estimates of the Ministry of Planning, the targets of the Central Bank of Egypt, and global price estimates, according to a statement issued by the Cabinet.

The Minister of Finance stated that, in light of the budget estimates, which include targeted reform measures, the primary surplus is expected to reach 2.5% of GDP. It is the highest primary surplus targeted as part of efforts to reduce government indebtedness as a percentage of GDP, indicating that the new budget estimated the inflation rate at 16%.

He pointed out that the total revenues in the new budget are expected to grow by 38.4%, while tax revenues are expected to grow by 28%, thanks to the expansion of the tax base, the registration of new financiers, the strengthening of mechanization efforts, as well as the implementation of a large number of administrative and legislative reforms.

Meanwhile, the Minister of Finance said that the budget for the new fiscal year indicates a growth in allocations for support, grants and social benefits by 28.2%, compared to 17.1% in the budget for the current fiscal year (2022/23).

He continued: “This includes: subsidizing food commodities at an annual growth rate of about 20%, subsidizing petroleum materials at a growth rate of 24%, subsidizing exports at 462.5%, health insurance and medicines at an annual growth rate of 50.4%, and subsidizing housing (low-income and social housing) at an annual growth rate of 103.5%, and the social security pension at an annual growth rate of 24%, as well as contributions to pension funds and medical expenses for citizens."

He pointed out that the budget for the next fiscal year also includes an annual growth in wage allocations and employee compensation by 14.6%.