Related announcements by Dr. Maait are as follows:
· Budget deficit shrank to 1.9% against an average of 2.3% registered in the previous three years.
· 35.3% growth achieved in public revenues, to exceed the 28.9% increase in public expenses.
· 27.4 billion EGP worth of public investments; thus, marking an unprecedented increase of 85% in the history of state budgets.
· 86% increase in service and goods appropriations in response to expenditure increase in educational and health fields.
In the same context, Vice Minister of Finance for Fiscal Policies, Mr. Ahmed Kouchouk announced:
· Economic performance has improved, confidence regained by markets and international credit rating agencies in the Egyptian economy
Finance Minister Dr. Maait highlighted that all performance indicators of the State budget witnessed a leap over Q1 FY18/19. Total budget deficit declined to 1.9% of GDP as compared to an average of 2.3% over the last three years.
Q1 positive results prove Egypt's ability to achieve financial targets set in FY18/19 budget, most important of which is achieving a primary surplus in general budget by 2% of GDP, said Dr. Maait.
Thanks to the economic reform program, such improvement is achieved in the State's financial performance. Most of the planned financial procedures were approved in FY18 State budget, topped by rationalization of energy subsidies, approval of amendments of development fees law and the increase of production taxes on tobacco and cigarettes, stressed the minister.
State public revenues continued surging, achieving an annual growth of 35.3% over Q1 of the present FY, and higher than the 28.9% increase registered in public expenses in the same compared period last year.
Over the Q1 FY18, tax proceeds leapt by 39.8%, despite upping by 52% over last year, against an average growth of 26% in the last previous years. A number of tax items yielded significant proceeds: taxes on free professions edged by 53.4%, salary taxes by 32%, and value added taxes on goods and services by 37%, the minister added.
In July 2018, the government announced the implementation of a package of comprehensive social procedures, including salary and pension increases, revision of tax exemption rate to confront price hikes and to alleviate negative effects of reform procedures on underprivileged classes. The annual cost of these procedures is estimated to reach 1.3% of GDP.
Public investments witnessed an unprecedented leap over Q1 by 85% in comparison to Q1 the prior year to reach 27.4 billion EGP. Appropriations of goods and services also increased by 86% thanks to expenditure increase in the educational and health sectors. Such significant figures are indicative of the government's great interest to meet necessary needs of citizens, and efforts made to increase public allocations on human resources development, maintenance programs and infrastructure development in all governorates, stressed the minister.
Vice Minister of Finance for Fiscal Policies, Mr. Ahmed kouchouk, noted that thanks to the government's pursuance in implementing the financial and economic reform program, confidence of international markets and institutions in the Egyptian economy has been regained and Egypt's credit rating by major international credit rating agencies upgraded.
Great financial sums have been yielded from the program of energy subsidy rationalization and the reform of public expenditure. Resulting financial excesses from the restructuring of priorities of public expenditure have been directed to social dimension programs and public investments, which contributed to the improvement of economic growth noted Mr. Kouchouk.