Egypt’s draft budget for the fiscal year 2024-2025 outlines ambitious economic goals with projections of gross domestic product (GDP) growth of 4 percent and commitments to reducing the budget deficit. In a meeting with President Abdel Fattah Al-Sisi, finance minister Mohamed Maait revealed the budget with forecasts for an initial surplus of 3.5 percent.
The budget also aims to decrease the overall deficit to 6 percent of Egypt’s GDP in the medium term. Moreover, the draft budget expects total revenues to grow 36 percent to $60.6 billion and expenditures to rise 29 percent to $81.5 billion.
Investment in human development
Egypt’s 2024-2025 budget places great emphasis on human development in line with the president’s goals. Egypt will significantly boost allocations by 30 percent for the health and education sectors. Moreover, it will allocate $12.1 billion for wages, $13.3 billion for subsidies and social benefits, and $0.84 billion for the Takaful and Karama social support programs.
Introducing the concept of a general government budget for the first time provides a more comprehensive overview of Egypt’s finances. This broader framework projects total revenues to reach $83.6 billion and total expenditures to reach $102.4 billion. This broader framework enables better management and planning of the state’s resources.
In an effort to further support low and middle-income families, Egypt’s budget allocates $12.6 billion for subsidies. Moreover, it has raised the target for petroleum subsidies in this year’s budget by 9 percent to $2.72 billion.
Read: Egyptian PM aims to bring down prices of essential goods by 15-20 percent
Commitment to economic reform
Following the financing deal with the International Monetary Fund, the World Bank, and the European Union, Egypt has committed to economic reform. Egypt’s outlook also ushers growth and recovery following the exchange rate liberalization which will boost investor confidence and foster economic growth. Egypt’s goal of reaching a growth of 4 percent in its draft budget is ambitious compared to S&P Global’s expectations of 3 percent growth in 2024.
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