Egyptian President Abdel Fattah El-Sisi has given directions to increase the annual income tax exemption to EGP 36,000 from EGP 24,000, according to the Egyptian Presidency.
The President’s directives are part of the State’s efforts to mitigate the effects of the global economic crisis and its repercussions on citizens that come during a meeting held at the Presidency between President El-Sisi, Prime Minister Mostafa Madbouly, and Minister of Finance Mohamed Maait to discuss the draft FY 2023/24 budget.
The Minister of Finance presented the most important final indicators of the proposed budget, which seeks to achieve a growth rate of 5% of GDP. A primary surplus of 2.5% of GDP is expected, with a total deficit of about 6.37%.
Furthermore, the budget may witness an increase in the rate of revenue growth to around 31% to reach over EGP 2 trillion. It will also increase spending by 30.5 percent to about EGP 2 trillion and 838 billion.
However, the expenses include an increase in wages by 15% to reach EGP 470 billion, an increase in subsidies, grants, and social benefits by 24%, to reach EGP 496 billion, and an increase in investment allocations to reach EGP 512 billion.
Earlier in March, El-Sisi announced raising the minimum wage for government employees to EGP 3,500 and pensions by 15%, as part of a wide-ranging social package to alleviate ramifications of the global economic situation on the public, starting April 1st.
The minimum wage for government employees was last raised in October 2022, from EGP 2,700 to EGP 3,000.
