Egypt fast-tracks recycling plant to turn Suez Canal into 'green canal'    Global pressure mounts on Israel as Gaza death toll surges, war deepens    Egypt targets 7.7% AI contribution to GDP by 2030: Communications Minister    Irrigation Minister highlights Egypt's water challenges, innovation efforts at DAAD centenary celebration    Egypt discusses strengthening agricultural ties, investment opportunities with Indian delegation    Al-Sisi welcomes Spain's monarch in historic first visit, with Gaza, regional peace in focus    Cairo governor briefs PM on Khan el-Khalili, Rameses Square development    El Gouna Film Festival's 8th edition to coincide with UN's 80th anniversary    Egypt expands medical, humanitarian support for Gaza patients    Egypt condemns Israeli offensive in Gaza City, warns of grave regional consequences    Cairo University, Roche Diagnostics inaugurate automated lab at Qasr El-Ainy    Egypt investigates disappearance of ancient bracelet from Egyptian Museum in Tahrir    Egypt launches international architecture academy with UNESCO, European partners    Egypt signs MoUs with 3 European universities to advance architecture, urban studies    Egypt's Sisi, Qatar's Emir condemn Israeli strikes, call for Gaza ceasefire    Egypt condemns terrorist attack in northwest Pakistan    Egyptian pound ends week lower against US dollar – CBE    Egypt hosts G20 meeting for 1st time outside member states    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt targets 1% budget initial surplus in FY2020/21, 1.5% in FY2021/22
Published in Ahram Online on 28 - 04 - 2021

Egypt is targeting a primary balance to GDP ratio (initial surplus) of 1 percent in FY2020/21 and a 1.5 percent in FY2021/22, Minister of Finance Mohamed Maait announced.
Maait made his statements on Wednesday, a day after the launching of Egypt's second wave of economic reforms that concentrate on structural reforms in a number of sectors.
Egypt will adopt a package of structural reforms on the level of macro fiscal policies that aim to achieve financial stability, rein in budget deficit to GDP ratio, curb the public debt to GDP ratio, keep a sustainable economic growth rate, and uplift public revenues collection efficiency and ensure its well-management, according to Maait.
The macro fiscal structural reforms are expected to boost spending objects on development projects and back economic sectors and the segments most-hit by the pandemic.
He added that the government has launched the second wave of its economic reform programme after the significant success of the first phase of the programme as attested to by international financial institutions and global credit rating corporations.
Maait stressed that the new wave of reforms does not imply any additional burdens on citizens.
On Egypt's FY2021/2022's — which starts in July — key targets, Maait said budget deficit to GDP ratio is expected to decrease to 6.7 percent, down from the projected 7.07 percent in the current FY2020/2021.
In this regard, Egypt's budget deficit to GDP ratio recorded 12.5 percent in FY2015/16, while initiating the economic reform programme and declined to 7.9 percent in FY2019/20, Maait illustrated.
On the other hand, government indebtedness declined by 20.5 percent of GDP over three years to reach 87.5 percent by the end of FY2019/20, down from 108 percent by end of FY2016/17, and it is expected to increase slightly to 89 percent by end of FY2020/21 and to maintain this level in FY2021/22, according to Maait.
He noted that the finance ministry will draft a medium budget, for the first time, that includes the FY2021/22 draft budget and two other draft budgets through FY2023/24, which will all be submitted to parliament.
On the legislative side, Maait stated that the public budget law and government accountancy law, which govern Egypt's fiscal performance, were merged into the unified public finance law to keep up with the recent global developments in this regard.
He added that the unified public finance law aims to rationalise public money management through a number of procedures, including uplifting financial performance efficiency in ministries and other state-bodies and setting spending objects priorities.
On Tuesday, Egypt announced the launch of the second phase of its economic reform programme, which shifts focus on structural reforms, after a wrap-up of the first phase of the International Monetary Fund (IMF) backed economic reform programme that has been in progress since 2016.
Dubbed the 'National Structural Reform Programme' (NSRP), the three-year structural reform phase aims to back the economy and bolster comprehensive and sustainable growth.
In May 2020, Egypt submitted a request to the IMF to obtain a loan worth $5.2 billion, under the stand-by agreement (SBA) programme to back its structural reform programme amid the heavy pressure the COVID-19 outbreak imposed on Egypt's finances.
So far, Egypt has received two tranches of the loan, worth $3.6 billion, and it is expected to get the third tranche in June 2021 after completing the final review of the loan programme, which will be conducted by the IMF in May.


Clic here to read the story from its source.