Soft Launch
Largest Budget Ever in Egypt History to be implemented by EGP 1.6 trillion, Announces Finance Minister Dr. Maait 
 

·         EGP 326.8 billion in allocations for education and health sectors, 3.1 billion for salaries, 149 billion for commodity subsidy.

·         EGP 9.7 billion appropriated for supplying medicines, 1.5 billion for baby formulas, and 1.3 billion for underprivileged in the comprehensive health Insurance system

·         EGP 82.2 billion allocated for pension funds, 18.5 billion for Social solidarity funds "Takaful and Karama"

·         EGP 3.5 billion allocated for supplying natural gas to households, and 3.9 billion for Social Housing projects.

·         Public investments recorded its highest increase since the  last 10 years by 40%.

 

Finance ministry, Dr. Mohammed Maait, has recently announced the implementation of the new budget for the 2019/20 fiscal year with a total of EGP 1.6 trillion in expenditures, an increase of EGP 150 billion from prior year's budget.

Dr. Maait says in a statement that the such increase in this year's budget is due to increases in allocations for programs enclosing social dimensions such as state employees' salaries that have increased by EGP 31 billion to reach EGP 301 billion. Such increases are undertaken to address the lifting of salaries lower threshold to mount to  EGP 2000 up from 1200 monthly, as well as to finance the most significant step of employee promotions in the State's administrative body with a value of EGP 1.5 billion. All State employees shall receive a regular bonus of EGP 75 in minimum, and a EGP 150 monthly incentive so as to help  low- paid employees.

All arrangements have been made by the Ministry of Finance to embark on the implementation of the new budget, confirms Dr. Maait.  Required allocations have been transferred from the entities included in the budget. Strict instructions are also issued  underlining the importance of abiding by expenditure rationalization, not exceeding the set allocations for public entities, and tightening control over public expenditure.

The implementation of the new general budget goes in line with the general framework of the State policy on both the economic and social axes. Thus, it sets to reflect directives of political leadership to the government, especially with respect to means of increasing economic growth rates. Economic growth rates are forecast to be around 6%,  by 6.5 to 7 percent increase on the mid-term, which  would accordingly support the government and the Central Bank of Egypt's plans to curb down inflation rates to less than 10%, says Dr. Maait.  

In abidance  with instructions of  the political leadership to enhance human resources' budget allocations, the new budget includes an unprecedented increase in allocations for education and health sectors, reaching EGP 326.8 billion compared to EGP 257.7  billion last fiscal year.

Dr. Maait says that EGP 124.9 billion are allocated to the health sector, EGP 134.8 billion to pre-university education sector, and EGP 67 billion to higher education sector.

 Dr. Maait also confirms that the new general budget will continue considering top priorities for public expenditure in order to achieve more financial funds by mid-term and to increase general expenditure on economic and social development projects to improve services for citizens. 

Dr. Maait says the new budget includes an unprecedented allocations for pharmaceuticals. Namely, EGP 9.7  billion is assigned for medicines against EGP 7 billion in the prior year's budget and EGP 1.5 billion for baby formulas. Allocations worth EGP 7.6 billion are designated for treatment at the State's expense against EGP 5.7 billion last fiscal year. In addition, EGP 1.3 billion are allocated for paying contributions of the under-privileged in the comprehensive health insurance system. Funds are also  allocated for student health insurance, breadwinner women, pre-school age children and social insurance pension.

Moreover, EGP 82.2 billion is assigned for pension funds with a 13.2% increase compared to prior year, and EGP 18.5 billion for paying pensions of social solidarity funds "Takaful and Karama".

In the new budget, allocations for  product subsidy programs totaled  nearly  EGP 149 billion: EGP 89 billion for subsidy of supply products,  EGP 52.9 for petroleum products with a decrease by EGP 35 billion from prior year, EGP 4 billion for electricity, EGP 1 billion for water companies, EGP 3.5 billion for  supplying natural gas to households.

In consideration to the social dimension in the transportation field, the budget includes EGP 3.46 billion in support for transportation activities: EGP 1.85 billion assigned for Passengers Transportation Authority in Cairo and Alexandria, EGP 1.6 billion for subsidizing students railway contributions and non-economic routes in the underground metro.

To preserve the State's assets and properties, the new budget provides for maintenance activities by allocations of EGP 12 billion against EGP 7.8 billion last year.

Dr. Maait also notes that the budget includes as well subsides and grants to development sectors by EGP 4.9 billion, including EGP 3.9 billion for supporting social housing program ( 120 thousand residential units),   development projects in Upper Egypt, interests of soft loans, rapid transit vehicle fund, in addition to allocating EGP 6 billion for boosting exports.

In the new budget, government investments financed from the General Treasury are increased by 40% from the previous fiscal year, rounding EGP 140 billion against EGP 100 billion in the 2018/19 budget, thus being the highest increase in investments since the last ten years.