The Ministry of Finance publishes the financial statement of the 20/21 budget

DOSSIER – Ministry of Finance

CAIRO – June 2, 2020: The Ministry of Finance published on Monday the financial statement of the general state budget for the fiscal year 2020/2021.

The statement noted that the government is striving to overcome the coronavirus crisis with as little damage as possible by providing assistance and support to the most needy sectors and categories so as to help the economy recover quickly with the aim of to complete the development process.

She referred to the economic reform program implemented by the State during the last period, noting that this program has helped to build the pillars of a powerful economy capable of absorbing shocks and coping with the difficulties of ‘a way that helps the economy to gain the confidence of countries around the world, international institutions and investors.

“Total spending in the 2020/2021 budget is expected to reach around LE 1.713 trillion, compared to LE 1.574 trillion in the 2019/2020 budget,” the ministry said.

The ministry attributed this increase in spending to increasing wages as well as presidential decrees on improving the conditions of workers in the state administrative body, increasing investments to improve services and creating jobs.

Wages and workers’ compensation account for 19.6% of total government budget spending, the statement said.

The financial statement revealed an allocation of LE 335 billion for wages and accidents at work in the general budget 2020/2021, with an increase of LE 33.8 billion compared to LE 301.1 billion in 2019 / 2020.

The press release says the increase is used to fund salaries, bonuses and benefits for workers in government agencies.

He also underlined that the reform of the salary structure is one of the initiatives which contributes to the improvement of the financial conditions of civil servants at a total cost of LE 34 billion.

With regard to the public debt, the press release indicates that the interest charges for servicing the public debt in the next budget are projected at LE 566 billion, compared to LE 569 billion in the current year’s budget.

Furthermore, the statement showed that purchases of non-financial assets reached LE 280.6 billion in the 2020/2021 budget compared to LE 211.2 billion in the 2019/2020 budget.

Purchases of products and services in the budget for the coming fiscal year reached around LE 100.2 billion, or 5.8 of the total expenditure, compared to LE 74.9 billion in the 2019/2020 budget.

The statement revealed that part of these funds will go towards the purchase of drugs, medical products, printing of textbooks, etc.

Regarding subsidies for petroleum products, she said they would reach LE 28.193 billion, compared to LE 52.963 billion in the current budget, marking a decrease of LE 24.770 billion.

He added that subsidies for medicines and baby milk will increase by around LE 250 million, in the 2020/2021 budget, to reach LE 1.750 billion.

On March 26, the Egyptian cabinet, headed by Prime Minister Mostafa Madbouli, approved the draft budget for the new fiscal year 2020/2021 on Thursday.

Egyptian cabinet approves 2020/21 draft budget

CAIRO – March 26, 2020: The Egyptian cabinet, headed by Prime Minister Mostafa Madbouli, on Thursday approved the draft budget for the new fiscal year 2020/2021.


Source link

Marianne R. Winn

Leave a Reply

Your email address will not be published. Required fields are marked *