Minister of Finance: The Egyptian economic reform path is bearing fruit in the financial performance for the year 2023/2024 during the past nine months.

 Financial performance during the period from July to March 2024 exceeds budget targets despite the severe effects of global economic crises 

 

Managing the state’s public finances amid very huge challenges due to the slowdown in economic activity and regional and international geopolitical tensions 

 

We recorded a primary surplus of 416 billion pounds, at a rate of 3% of the gross domestic product, compared to 50 billion pounds during the same period last year, with an annual growth rate of more than 8 and a half times 

 

< h2>179 billion pounds transferred to the state treasury from the “Ras Al-Hikma” project. About 1.3% of GDP 

 

Public revenues rose to 1.453 trillion pounds, with a growth rate of 57.1% over the same period of the previous year and by 38% without the “Ras Al-Hikma” project. 

 

Increasing tax revenues to more than one trillion pounds, by 41.2%, as a result of mechanization works and expanding the tax base, without imposing any new burdens on citizens or investors 

 

< span style="color:#3498db;">Non-tax revenues increased by 122.9% during the past nine months in the period from July to March 2024

 

Expenses increased to 2.323 trillion pounds, with a growth rate of 50.8% due to the increase in the value and debt service bill as a result of the significant increase in the interest rate and the increase in spending on social protection, wages, health, and education 

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We aim to reduce the debt service bill to 30% of public expenditures in the medium term as part of an integrated strategy to put the debt on a downward path to reach 80% in June 2027

 

< span style="color:#3498db;">We aim for the budget agencies’ debt portfolio to reach 3.3 years by the end of June 2024 to mitigate the financing needs of the general budget 

 

We succeeded in maintaining the stability of the total deficit rate to reach 5.42% of GDP, compared to 5.40% for the same period last year, despite the huge negative effects of global crises and high interest rates 

 

We provided all the needs of the education sector at a value of 180 billion pounds, and health sector 125 billion pounds, despite the severity of the shocks affecting economic activity 

 

Increasing actual spending on support, grants and social benefits by 33.9% to reduce the inflationary burdens on low- and middle-income families 

 

We paid 135 billion pounds worth of dues to the Insurance and Pensions Fund, 69 billion pounds to support food commodities, and 24 billion pounds to “Solidarity and Dignity.” With a growth rate of 44%

 

Increasing actual spending on wages by 74.6% to accommodate the exceptional social packages scheduled to ease the burdens on state workers

 

Investments financed by the state’s general treasury decreased by 19% to make room for the private sector 

 

 

Dr. Mohamed Maait, Minister of Finance said that the new path of the Egyptian economy, which is based on structural reforms that support the recovery process by pushing the private sector to lead the engine of growth, stability and economic development, while attracting more local and foreign investment flows… has begun to bear fruit in the financial performance for the year 2023/2024 within the nine months. The financial performance results in the period from July to March 2024 exceeded the budget estimates and targets despite the harsh effects of the global economic crises, as the state’s public finances are managed amidst these very huge challenges due to the slowdown in economic activity and regional and international geopolitical tensions, in a way that was reflected in the achievement of indicators Positive, it translates the efforts made to lay the foundations of financial discipline. The minister added that we recorded a primary surplus of 416 billion pounds at a rate of 3% of the gross domestic product, compared to 50 billion pounds at a rate of half a percent (5.5%). In the same period of the last fiscal year, with an annual growth rate of more than 8 and a half times, he pointed out that 179 billion pounds had been transferred to the state treasury from the “Ras El Hekma City Development” project. About 1.3% of GDP.  The minister indicated that the total value of the state’s public revenues during the past nine months rose to 1.453 trillion pounds, with a growth rate of 57.1% over the same period of the previous year and by 38% without taking into account what went to the treasury from the “Ras al-Hikma” project, explaining Increasing non-tax revenues by 122.9%, in addition to increasing tax revenues to more than one trillion pounds by 41.2% as a result of mechanization works and expanding the tax base and without imposing any new burdens on citizens or investors during the period from July to March 2024, compared to last year. Taking into account the increase in non-sovereign tax revenues by 32% and sovereign tax revenues to 83%  The minister said that the state’s public expenditures rose to 2.323 trillion pounds, with an annual growth rate of 50.8% during the past nine months, due to the increase in the value and debt service bill as a result of the significant increase in the interest rate, and the increase in spending on support, social protection, and wages, within the framework of a commitment The government will quickly deal with the negative repercussions of global crises and absorb as much of their effects as possible from citizens, while continuing to build the Egyptian human being by focusing on human development with its two axes: health and education, pointing out that we aim to reduce the debt service bill to 30% of public expenditures in the medium term. As part of an integrated strategy to put the debt rate on a downward path to reach 80% in June 2027, especially since we succeeded in maintaining the stability of the total deficit rate to reach 5.42% of the GDP compared to 5.40% for the same period last year, despite the effects The huge negative impact of global crises and the rise in interest rates, and also maintaining the stability of the life of the budget agencies’ debt portfolio despite the severity of global economic challenges and the increasing uncertainty among investors around the world. We aim for the life of the budget agencies’ debt portfolio to reach 3.3 years by the end of June 2024. To alleviate the financing needs of the general budget.  The minister added that all the needs of the education sector were provided during the past nine months, at a value of 180 billion pounds, and health sector 125 billion pounds, despite the severity of the shocks affecting economic activity, indicating an increase in actual spending on support, grants, and social benefits by 33.9% to reduce the inflationary burdens on Limited and middle-income families.   The minister explained that the state’s public treasury, during the period from July to March 2024, paid 135 billion pounds in the value of dues to the Insurance and Pensions Fund, 69 billion pounds to support food commodities, and 24 billion pounds to “Solidarity and Dignity.” With a growth rate of 44% over the same period of the previous year, actual spending on wages increased by 74.6% to accommodate the exceptional social packages scheduled to ease the burdens on state workers, indicating that investments financed from the state’s general treasury decreased by 19% as part of the state’s efforts to free up… There is room for the private sector to lead development and economic activity and provide one million job opportunities annually.

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