The government met its 8.4% budget deficit and 2% primary budget surplus targets in FY2018-2019, which ended on Sunday, according to an Ittihadiya statement out following a meeting between President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, and Finance Minister Mohamed Maait. The economy grew at a 5.6% clip, and the debt-to-GDP ratio is expected to continue falling to reach 90%, above the fiscal year’s 93% target. The three also reviewed the state’s budget FY2019-20 (pdf), in which expenditures are expected to be EGP 150 bn higher than last fiscal year. The increase is primarily due to the recent decision to increase the national minimum wage to EGP 2,000 from EGP 1,200 and raise minimum monthly pensions for state employees. The budget took effect when El Sisi ratified it on Monday.

Tags: