The Cabinet approved Egypt’s draft budget for fiscal year (FY) 2023/24, during a meeting in the New Administrative Capital on Wednesday.
Minister of Finance Mohamed Maait said that the target growth in the budget was 4.1%, in line with the estimates of the Ministry of Planning and Economic Development, the targets of the Central Bank of Egypt, and global price estimates.
The new budget aims to achieve the highest primary surplus of 2.5% of GDP, and the growth of allocations for subsidies, grants, and social benefits by 28.2%, compared to 17.1% in the current fiscal year’s budget.
It is the highest primary surplus targeted in the framework of efforts to reduce government debt to GDP, indicating that the new budget estimated the inflation rate at 16%.
It also aims to increase subsidies for food commodities by 20%, subsidies for petroleum products by 24%, subsidies for exports by 462.5%, and support for health insurance and medicines by 50.4%.
Housing support (low-income and social housing) will grow by 103.5% and social security pension support will increase by 24%.
Maait explained that total revenues in the new budget are expected to grow by 38.4%, while tax revenues are expected to grow by 28%.
The Minister said that the budget includes a social security pension at an annual growth rate of 24%, as well as contributions to pension funds and medical expenses of citizens.
He pointed out that the budget for the next fiscal year also includes an annual growth in wage and employee compensation allocations by 14.6%.