The Egyptian Ministry of Finance revealed its goals for the next fiscal year 2022/2023, noting that it will witness greater spending on improving people’s lives.
This came in a statement issued by the Egyptian Ministry of Finance, on Wednesday morning.
Egyptian Finance Minister Mohamed Maait said that the state’s draft general budget for the next fiscal year 2022/2023 (during the period from July 1, 2022 until June 30, 2023), will witness greater spending on improving people’s lives and facilitating decent livelihoods, So that priority is given to effective programs in health and education.
Maait also presented the targeted indicators in the next fiscal year, as he explained that the goal is to raise the growth rate to 5.7 percent, so that it will gradually rise to 6 percent in the 2024/2025 fiscal year, achieve a primary surplus of 2 percent and reduce the total deficit to 6.1 percent, to decline to 5.1 percent in the 2024/2025 fiscal year, and reducing the debt-to-GDP ratio to 90 percent in the next fiscal year, to drop to 82.5 percent in June 2025.
The government also aims to reduce the debt service ratio of the total budget expenditures to less than 30 percent, compared to a target of 31.5 percent in the current fiscal year 2021/2022.
Maait pointed out that the draft budget was targeted to “move forward in enhancing the movement of economic activity, in light of the Corona pandemic, by carrying out broad structural reforms in various fields, in a way that contributes to pushing the private sector to lead the locomotive of economic growth, helps in the localization of industry, and increases productivity, Deepening the local component and stimulating exports.
The Egyptian government has also implemented, since 2016, an economic reform program, which includes imposing value-added tax, liberalizing the exchange rate, reducing subsidies for electricity and petroleum products, and reducing imports of non-essential goods, in an effort to revive the economy and return it to the path of growth.