The House of Representatives in Egypt has recently sanctioned a new budget for the fiscal year 2024/2025. According to Finance Minister Mohamed Maait, this budget will result in a 29% year-on-year increase in public expenditures, amounting to EGP 3.87 trillion, which represents approximately 22.60% of the country’s GDP.
According to a recent cabinet statement, it is projected that public revenues will experience an 8.50% year-over-year increase, reaching EGP 2.60 trillion in the fiscal year 2024/2025. This represents 15.40% of the country’s GDP, as emphasized by Minister Maait.
The minister further highlighted that the total budget deficit is anticipated to reach EGP 1.20 trillion, equivalent to 7.30% of GDP, in FY24/25, marking an increase from EGP 555 billion, or 4% of GDP, recorded in FY23/24.
He added that the government’s objective is to achieve a primary surplus of $EGP 591.40 billion, or 3.5% of GDP, in FY24/25, down from $EGP 805.10 billion, or 5.75% of GDP, in the current fiscal year, which ends on 30 June 2024.
According to the statement, the government’s objective is to attain a primary surplus of EGP 591.40 billion, equivalent to 3.5% of the GDP, in the fiscal year 2024/2025. This amount represents a decrease from the current fiscal year’s primary surplus of EGP 805.10 billion, which is 5.75% of the GDP, ending on June 30, 2024.
According to Maait, the impact of collecting $12 billion from the Ras El Hekma City development project for the public treasury has been revealed. This non-recurring resource constitutes 50% of the project’s total revenues. Maait emphasized that the constitutional requirements for health and education spending have been fulfilled. Specifically, allocations include EGP 496 billion for health, EGP 565 billion for pre-university education, EGP 293 billion for higher education, and EGP 140.10 billion for scientific research.
Wage allocations increased to EGP 575 billion in the fiscal year 2024/25 from EGP 494 billion in the fiscal year 2023/24, accommodating a recent wage package that raised the monthly minimum wage by 50% to EGP 6,000. Support, grants, and social benefits are budgeted at EGP 635.90 billion in fiscal year 2024/25, representing a 19.30% increase from the previous fiscal year’s EGP 532.80 billion. This allocation encompasses EGP 154.50 billion for petroleum subsidies, EGP 134.20 billion for food supplies, and EGP 40 billion for social security and pensions.
According to Zawya Website The budget includes allocations of EGP 11.90 billion for social housing, EGP 3.50 billion for natural gas delivery to homes, EGP 18.40 billion for health insurance and treatment of the indigent, and EGP 2.40 billion for the universal health insurance system in certain governorates.
Projected investment allocations are expected to increase to EGP 496 billion in FY24/25 from EGP 334 billion in FY23/24. Approximately 44% of these investments will be self-financed, ensuring no impact on the budget deficit. A ceiling of EGP 1 trillion has been established for public investments across all state agencies in the upcoming FY, commencing on 1 July 2024.
