• Debt Management Measures: Minister of Finance, Mohamed Maait, introduced new measures for government debt management in the fiscal year 2024/2025. This includes implementing a binding ceiling for annual burdens, aiming to reduce the debt-to-GDP ratio to less than 85% by June 2028.
• Public Spending Increase: Following President Abdel Fattah Al-Sisi’s directive to increase public spending in the upcoming fiscal year, Minister Maait highlighted the government’s focus on enhancing citizens’ living conditions, elevating wages for state workers and pensioners, and mitigating inflationary effects.
• Fiscal Strategy for Economic Growth: Minister Maait outlined a comprehensive fiscal strategy for the next year, emphasizing fair economic growth driven by increased private sector involvement.
Egypt’s Minister of Finance, Mohamed Maait, announced new measures for the upcoming fiscal year (2024/2025) to enhance the international competitiveness of the Egyptian economy.
The Minister of Finance detailed new measures for government debt management, including a binding ceiling for annual burdens to decrease the debt-to-GDP ratio to less than 85% by June 2028.
The budget agencies’ debt lifespan will be extended to four years in the medium term. The government aims to reduce the need for rapid financing, with a strategy focused on annual updates to decrease the ratio and service of debt to the gross domestic product.
The announcement came after President Abdel Fattah Al-Sisi directed an increase in public spending in the upcoming fiscal year (2024/2025).
The move aims to enhance citizens’ living conditions, elevate the wages of state workers and pensioners, and mitigate inflationary effects.
Maait emphasized that the government’s primary goals include achieving economic targets, prioritizing the health and education sectors, and expanding the social protection umbrella.
The allocation of fair budgets is crucial to addressing the growth and development needs of all regions and societal segments.
He reiterated the state’s commitment to completing the Decent Life initiative, a historic project aimed at improving the lives of 60% of Egyptians residing in rural areas.
In a statement released by the Ministry of Finance, Maait outlined the government’s commitment to structural reforms to bolster promising sectors and enhance the international competitiveness of the Egyptian economy.
The fiscal strategy for the next year emphasizes fair economic growth, driven by increased private sector involvement as a catalyst for development and economic recovery.
Maait highlighted the government’s focus on maintaining macroeconomic stability, achieving positive financial indicators, and recording a primary surplus of no less than 2.5% of the gross domestic product annually in the medium term.
Efforts will be directed toward setting deficit and debt rates downward to create flexible fiscal spaces for strengthening social protection programs.
Maait emphasized ongoing efforts to expand the tax base by integrating informal activities, utilizing smart tax solutions, and automated systems for accurate tax community surveys. The overarching goal is to achieve tax justice while maintaining the stability of tax policies.
The government remains committed to developing the government securities market to attract more investors by diversifying financing sources.
The proposed fiscal program seeks to deepen financial discipline policies, attract investment flows, and meet financing and external needs, ultimately fostering economic growth and recovery in the coming years.
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