Economy Steadily Grows; Inflation to Be Under Control
Source: www.export-egypt.com 5/6/2018
The Egyptian economy is steadily maintaining its growth momentum, as the country targets achieving sustainable growth rates of 6-7 per cent, Minister of Finance Amr el Garhi said .
Addressing the House of Representatives’ planning and budget committee meeting, convened to review the new state budget 2018/2019, el Garhi said the government aims at maintaining the growth momentum to bring inflation under control.
The minister stressed the importance of the new state budget for being the first one to be outlined by the government since the recent economic reforms.
He praised the coordination in policies between the Central Bank of Egypt and the Finance Ministry.
The new state budget targets a primary surplus of two percent, el Garhi said, adding this was deemed a great achievement, as the country had opted to rely on financing its expenditures by debts in 2011/2012 and 2014/2015.
“The debt size is the great challenge facing the government,” he stressed.
The government gives top priority to attracting investments across the board to boost the economy and reduce unemployment rates, the minister said.
According to the draft of the new budget, Egypt targets an increase in revenues to EGP 989 billion next year, up from EGP 813 billion currently, el Garhi said.
Wages are targeted to rise to EGP 266 billion against the current 240 billion, and the tax yields are to be upped to EGP 770 billion, compared to the current 620 billion, the minister elaborated.
He pointed out that the subsidies are planned to be increased in the new budget, saying that the government aims at slashing the budget deficit by four percent in 2022.
He noted that the government would work to support the low-income segments of the society, shore up the industry and increase production efficiency.