The Minister of Finance Mohamed Maait announced that Egypt is targeting real GDP growth of 5.4% in the fiscal year 2021/22, and is looking forward to reducing the budget deficit-to-GDP ratio to 6.7%.
Maait also said that the fiscal year 2021/22 budget targets an initial budget surplus of 1.5%.
He made his statement while delivering the government's financial statement for the draft budget for the FY 2021/22 before the parliament's general assembly meeting held on Sunday.
He added that budget revenues are estimated at EGP 1.3 trillion in 2021/22, while liabilities are expected to reach EGP 1.8 trillion.
He pointed out that the FY 2021/22 budget is witnessing an unprecedented increase in public investment allocations to EGP 358.1 billion, with a growth rate of 27.6% compared to the FY 2020/21.
Maait indicated that EGP 10 billion had been allocated to subsidize gas and electricity prices for the manufacturing industry.
He added that the budget allocated EGP 2.1 billion to convert cars to run with natural gas, as well as EGP 87.2 billion to support food commodities, and EGP 19 billion for social security pensions, including the "Solidarity and Dignity" programme.
It also includes allocating EGP 7 billion for expanding the comprehensive health insurance system to include Luxor, Aswan, Ismailia, Suez and South Sinai.
The draft budget also included an 11.4% increase in the salaries and compensation of state employees, amounting to EGP 361 billion.
Finally, Maait said that the draft budget for the fiscal year 2021/22 comes in line with presidential directives to maximize public spending expenditures, support mega-national projects, and support productive activities and sectors most affected by the pandemic.
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