Maait: 27.6% Increase in Public Investment to Improve Quality of Life

Minister of Finance Mohamed Maait confirmed that the government insisted on completing economic reforms in light of the coronavirus crisis through a stimulus package amounting to 2% of the gross domestic product (GDP) to support the sectors and groups most affected.

Maait explained that the draft state budget for the fiscal year 2021/22 reflects the presidential directives to complete the development process, as the financial allocations for public investments are witnessing an unprecedented increase to reach EGP 358.1 billion with a growth rate of 27.6% to ensure the improvement of services provided to citizens.

In response to the inquiries of some of the participants in the seminar organized by the American Chamber of Commerce in Cairo, the minister indicated that the Egyptian economy, according to the International Monetary Fund (IMF) report, has continued to outperform many economies in the region, to secure the second position among the largest economies in the Arab world during 2020.

He explained that Egypt, according to Fitch Ratings Agency, is one of only three countries in the Middle East and North Africa (MENA) that will return to pre-pandemic levels in 2021, supported by a recovery in the oil and gas sectors, as well as the tourism sector to record a growth rate of 5% during the fiscal year 2021/22

The minister said, "We have succeeded in raising the efficiency of tax collection by 14% in 2021 despite the crisis, without imposing any new tax burdens. We have been able through digitization to achieve tax justice and integrate the informal economy In the official economy."

He pointed out that the customs system will witness a quantum leap at the end of the year, as the "single window" project helps reduce the time for customs clearance and lower the prices of goods and services in the local markets.

He added that the new law for small, medium-sized enterprises (SMEs) includes many incentives that push the owners of these projects to join the umbrella of the formal economy.

He concluded that in the medium term, the government aims to record a growth rate of 5.4%, reduce the total deficit to 6.7% of GDP, and achieve an itial surplus of 1.5% to ensure the stability of the budget by the end of the next fiscal year.