President El-Sisi is due to receive the draft budget of fiscal year 2021/2022 next week. He will review it before it is presented to the parliament to be ratified.
Finance Minister Mohamed Maait stated that the budget aims to support investments, especially in projects that offers support to rural areas and cater to the development of Upper Egypt.
This follows the directions of the president to enhance services, livelihood and sustainable development in Egypt in general.
Maait stated that for a national project aiming to develop rural areas over 3 years the cost can be as high as 600 billion Egyptian pounds.
One of the main goals of the budget is reducing deficit to 6.5% of the GDP. One way the budget aims to do that is by reprioritizing expenditure based on development goals.
Another main goal of the new draft and the budgets to follow is to lower state’s debt from 87% of the GDP in 2020 to 77% of the GDP by 2024.
Budget reforms and debt control is now more important than ever, especially after the breakout of the COVID-19 pandemic. As debt reduction helps support the economy against local and global crises and challenges.