Dr. Mohamed Maait, Minister of Finance, said that Egypt ranked first in the indebtedness reduction index in the world after its success in reducing the debt of the public budget agencies in relation to the Gross Domestic Product (GDP) by about 18% in only two years.
This percentage was 108% at the end of June 2017 and decreased to about 90.2% by the end of June 2019, and then it continued to decline to reach 88% at the end of June 2020, despite the negative effects of the emerging Coronavirus outbreak.
It was expected to down to 82% of GDP would be on 6/30/2020.
The minister indicated, during the plenary session of the House of Representatives (HoR) headed by Counselor Hanafi Jebali, to present the ministry’s statement from the implementation of the government program of Dr. Mustafa Madbouly, Prime Minister (Egypt starts 2018-2020), that this improvement is due to the positive development in financial indicators and the achievement of an initial surplus besides the financial settlement between the public treasury and pension funds, despite all the pressures on the general budget on both the resources and uses sides.
He pointed out that Egypt achieved the second-largest economic growth rate among emerging economies in the world despite the outbreak of Corona in the previous fiscal year.
He confirmed that the new public budget has achieved an increase in revenues estimated at 16%, compared to last year.
Maait indicated that a growth rate of about 3.6%, which is a positive rate, as Egypt ranked second in the world among emerging countries, and that had it not been for Corona, we would have been talking about the growth of surplus of 6% or more.
He said that the Ministry of Finance has allocated an amount of EGP 260 billion to the pension funds and that this amount is scheduled to reach EGP 306 billion on June 30 of this year.
He went on to say that within 48 years, according to the next fifty years plan, the amount allocated to the pension fund will reach EGP 45 trillion.
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