{"id":546897,"date":"2022-06-01T03:45:24","date_gmt":"2022-06-01T03:45:24","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/01\/mps-think-the-tax-revenue-targets-in-the-budget-are-a-bit-optimistic\/"},"modified":"2022-06-01T03:45:24","modified_gmt":"2022-06-01T03:45:24","slug":"mps-think-the-tax-revenue-targets-in-the-budget-are-a-bit-optimistic","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/01\/mps-think-the-tax-revenue-targets-in-the-budget-are-a-bit-optimistic\/","title":{"rendered":"MPs think the tax revenue targets in the budget are a bit optimistic"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <strong>After flagging FY 2022-2023 budget allocations for subsidy + social<\/strong><strong> safety net <\/strong><strong>spending, MPs are zeroing in on tax receipts:<\/strong> MPs at the House Planning and Budgeting Committee are skeptical that the government\u2019s forecasted tax revenues for the upcoming fiscal year are attainable, suggesting in a committee meeting yesterday that the target needs to be revised downwards. The draft FY 2022-2023 budget, which Finance Minister Mohamed Maait presented to the House of Representatives <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/59023cb0-be71-414c-9041-8118c08c2965\">earlier this month<\/a>, has penciled in EGP 1.2 tn in tax receipts, up from EGP 950 bn at the end of the current fiscal year and EGP 834 bn in FY 2020-2021. The forecast suggests tax revenues will grow 26% y-o-y.<\/p>\n<p><strong>\u201cIn normal economic conditions, tax receipts usually grow only 12% y-o-y,\u201d<\/strong> said Committee Deputy Chairman Mostafa Salem. \u201cThe current economic conditions are by no means favorable to generate such record growth in tax money,\u201d he said.<\/p>\n<p><strong>Gov\u2019t maintains these targets are attainable\u2026:<\/strong> \u201cWe expect an increase of around EGP 200 bn in tax receipts in one year \u2014 this is not an exaggeration at all,\u201d Tax Authority Chairman Reda Abdel Kader told MPs.<\/p>\n<p><strong>\u2026especially since we\u2019re expected to absorb external shocks:<\/strong> The Finance Ministry expects that the economy will be able to absorb the impact of the war in Ukraine and see GDP growth accelerating in the upcoming fiscal year. \u201cMost international financial institutions expect Egypt to achieve 5.7-6% growth in FY 2022-2023 despite the Russia-Ukraine crisis,\u201d Abdel Kader said. The IMF expects our economy to grow at a 5.0% clip in FY 2022-2023, according <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/773b32f1-c37f-45ca-8845-65d05411a210\">to its latest World Economic Outlook<\/a>, while a poll of economists by Reuters <a href=\"https:\/\/www.reuters.com\/world\/middle-east\/egyptian-economy-seen-growing-53-year-june-52-202223-2022-04-21\/\">last month<\/a> penciled in 5.2% GDP growth for the upcoming fiscal year.<\/p>\n<p><strong>We also have something of a precedent \u2014 Egypt\u2019s tax revenues grew throughout covid-19:<\/strong> \u201cDespite the pandemic\u2019s negative effect on the economy in FY 2020-2021, growth rates were still high, allowing the state to generate EGP 834 bn in tax receipts, which was higher than the previous fiscal year,\u201d Abdel Kader said.<\/p>\n<p><strong>HEALTHY DEBATE- MPs\u2019 concerns are part of the natural back-and forth between the House and government on its spending plan.<\/strong> Last week, the House Planning and Budgeting Committee <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/51f62891-ad04-47b0-93d4-1087a0721dd7\">raised flags<\/a> on the government\u2019s allocations for subsidies and social safety programs, suggesting that these spending areas need to be expanded. As we noted in <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/167c6aaf-a05f-4942-be61-e7dfb4d72673\">our explainer<\/a> of how the state budget process works, House committees could push back on key points in the budget as part of their review and discussion of the spending plan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After flagging FY 2022-2023 budget allocations for subsidy + social safety net spending, MPs are zeroing in on tax receipts: MPs at the House Planning and Budgeting Committee are skeptical that the government\u2019s forecasted tax revenues for the upcoming fiscal year are attainable, suggesting in a committee meeting yesterday that the target needs to be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7413],"tags":[279,72,1583,274,278,69],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-546897","post","type-post","status-publish","format-standard","hentry","category-budget-watch","tag-budget-watch","tag-enterpriseam","tag-fy-2022-2023-budget","tag-house-of-representatives","tag-state-budget","tag-tax","wpautop","entry"],"acf":{"mongo_id":"54bbc7a3-bd76-498b-bc12-839981fad55e","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[546882],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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And right in the nick of time.","author":"enterpriseam admin","date":"22 June 2022","format":false,"excerpt":"MPs give the green light to FY 2022-2023 budget: The House of Representatives approved in a plenary session yesterday the state\u2019s budget for the upcoming fiscal year that begins in July. The final spending plan passed yesterday is unchanged from the one Finance Minister Mohamed Maait and Planning Minister Hala\u2026","rel":"","context":"In &quot;BUDGET WATCH&quot;","block_context":{"text":"BUDGET WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/budget-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/269.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":622294,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/04\/mps-gave-their-final-approval-to-next-fiscal-years-budget\/","url_meta":{"origin":546897,"position":1},"title":"MPs gave their final approval to next fiscal year\u2019s budget","author":"enterpriseam admin","date":"4 June 2024","format":false,"excerpt":"Finance Minister Mohamed Maait confirms there won\u2019t be any tax hikes next FY.","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION 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&quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/4\/86.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":586283,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/09\/finmin-says-budget-deficit-to-widen-to-8-this-year-as-it-prepares-to-unveil-spending-plans\/","url_meta":{"origin":546897,"position":5},"title":"FinMin says budget deficit to widen to 8% this year as it prepares to unveil spending plans","author":"enterpriseam admin","date":"9 May 2023","format":false,"excerpt":"Higher tax receipts to help revenues outpace spending in the coming year","rel":"","context":"In &quot;BUDGET WATCH&quot;","block_context":{"text":"BUDGET 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