Egyptian Minister of Finance, Mohamed Maait, conveyed a sense of optimism for the nation’s economic future during a constructive dialogue with representatives from the industrial and commercial sectors on Tuesday.
In his address, Maait underscored the imperative for prompt economic recovery, emphasizing the pivotal role of increased exports, as well as agricultural and industrial production.
Despite facing notable pressures on the public treasury, Maait outlined ambitious fiscal targets, with the new budget aiming for an initial surplus of 3.5 per cent of GDP. Notably, revenues are set to primarily originate from non-tax sources, reflecting a strategic approach to fiscal sustainability.
“The government remains committed to maintaining stable tax policies to bolster economic recovery and stability, all while ensuring that investors are not burdened with additional taxes in the upcoming fiscal year,” stated Maait.
Regarding expenditure, the budget earmarks 3.8 trillion pounds for public spending, representing a significant 23 per cent growth. This allocation allows for flexible spending to effectively address economic shocks and ensure agile responses to emerging challenges.
Efforts to expand social protection measures seek to alleviate burdens on citizens without exacerbating inflationary pressures. Furthermore, public investments across all state entities are capped at one trillion pounds, aiming to foster private sector engagement in economic development initiatives.
Simultaneously, initiatives are underway to enhance transparency in financial management through the issuance of documents on financial risks and tax expenditures alongside the state budget. Special Funds and accounts, comprising 10 per cent of the total budget, are subject to stringent expenditure controls.
Moreover, amendments to the comprehensive health insurance law are being pursued to optimize tax deductions and promote equitable access to healthcare services.
The government’s commitment to fostering sustainable communication between the business community and policymakers was underscored, aiming to create an environment conducive to investment and economic growth.
Industry leaders expressed appreciation for the government’s dedication to supporting industrial localization and low-cost financing initiatives. Additionally, they emphasized the importance of sustained efforts to bolster small exporters and enhance their competitiveness in global markets.
