25 Mar 2021

The Cabinet has signed off on the draft budget for FY21/22, which will then be taken to the parliament for approval. The key highlights are:

• Overall deficit will decline to 6.6% vs. 7.8% in FY20/21
• Primary surplus will increase to 1.5% vs. 0.9% in FY20/21
• GDP will grow by 5.4%
• Revenues will increase by 16.4% to reach EGP1.3tn vs. EGP1.117tn in FY20/21, due to:

• Expanding the taxpayer base
• Implementation of electronic collection and payment systems
• Increase in the use of modern techniques to manage risks
• Investment spending will grow by 27.6%
• Export support and development spending will grow by 110%
• Wages will grow by 11.4%
• Spending on commodities will grow by 26%
• Commodities subsidies will reach EGP87.8bn vs. EGP83bn in FY20/21

• The Insurance and Pensions Fund will be paid its annual installment of EGP180bn

(Source: al-Mal, Hapi, Amwal al-Ghad, Arab Finance, Zawya)