Egypt’s Minister of Finance Mohamed Maait has revealed that EGP 308.2bn has been allocated to economic authorities in the new budget of fiscal year (FY) 2021/22, to support services and development projects.
The significant funding aims to both improve public services and the quality of life for Egypt’s citizens. It comes in line with the state’s efforts to maximise spending on laying the foundations of comprehensive and sustainable development in accordance with the Egypt 2030 Vision.
Maait also noted that economic authorities are crucial pillars of economic activities, which create a business climate that benefits the Egyptian economy.
As a result, the authorities and the funding ensure gradual improvement in financial conditions, expansion in investment fields, and good management of state assets.
The minister pointed out that the state’s projects are the main engine driving the economy, and have made Egypt one of only four countries to achieve positive growth rates despite the global pandemic.
He noted that 57 economic authorities contribute to producing resources for the state’s public treasury through surpluses and profits. The total target in FY 2021/22 is nearly EGP 176.9bn.
The new draft budget includes allocating EGP 87.2bn to the General Authority for Supply Commodities (GASC), and EGP 180bn to pay the annual instalments of the Insurance and Pensions Fund.
This comes within the framework of the agreement to solve conflicts with the Ministry of Social Solidarity. It includes paying insurance funds’ dues, in light of the Social Insurance and Pensions law, which have been accumulating for over 50 years.
Furthermore, EGP 5.5bn will be allocated to supporting and developing the Egyptian National Railways Authority (ENRA).
Of note, Egypt’s treasury contributes to the capital of economic authorities by about EGP 13.3bn, with the aim of laying the foundations of sustainable development.
Maait said that the Egyptian government aims to maintain a sustainable economic growth rate and raise the efficiency of collecting public revenues. This will take place in a manner that enhances spending on development projects aimed at improving the standard of living.
He stressed that continuing to support economic authorities is consistent with targeting a wider segment of society that will benefit from improving services and the quality of facilities. This is particularly as some of these bodies manage crucial public facilities.
Maait also shed light on the importance of concentrating all efforts to make the national integrated programme for structural reforms successful, to complete the reform process and achieve comprehensive development.
The minister said that the financial allocations for public investments in the draft new budget are witnessing an unprecedented increase.
This means that such allocations account for EGP 358.1bn, reflecting a growth rate of 27.6%, and ensuring that all services provided to citizens are enhanced. This step is also in line with the presidential directives to maximise spending on comprehensive and sustainable development.