{"id":617815,"date":"2024-03-28T00:00:00","date_gmt":"2024-03-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/28\/draft-budget-for-the-next-fiscal-year-heads-to-the-house\/"},"modified":"2024-03-28T00:00:00","modified_gmt":"2024-03-28T00:00:00","slug":"draft-budget-for-the-next-fiscal-year-heads-to-the-house","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/28\/draft-budget-for-the-next-fiscal-year-heads-to-the-house\/","title":{"rendered":"Draft budget for the next fiscal year heads to the house"},"content":{"rendered":"

Good morning, friends. <\/strong>An unusually busy week in local business and economy news for Ramadan is ending how it began, and we\u2019ve got a packed issue for you today to prove it. There\u2019s plenty for you to read through this morning, so let\u2019s jump right into it.<\/p>\n

So, when do we eat?<\/strong> Maghrib prayers are at 6:12 pm in the capital city, and you\u2019ll have until 4:20 am tomorrow to hydrate and caffeinate ahead of fajr.<\/p>\n

WEATHER- <\/strong>Expect another sunny day in Cairo today, with a daytime high of 32\u00b0C falling to 20\u00b0C, according to our favorite weather app. Be sure to pop on those sunglasses and check if your A\/C is ready for the cooler weather to end.<\/p>\n

It\u2019s more of the same in Alexandria<\/strong>, with a high of 31\u00b0C and a low of 17\u00b0C, but look out for rain forecasted from 10pm onwards.<\/p>\n

** <\/strong>DID YOU KNOW that we now cover <\/strong>Saudi Arabia<\/a><\/strong> and <\/strong>the UAE<\/a><\/strong>?<\/strong><\/p>\n

** ** Were you forwarded this email? <\/strong>Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> FTSE keeps Egypt on its demotion watch: <\/strong>Global index provider FTSE Russell is keeping Egypt on its watchlist for a possible demotion in its equity indexes as it continues to monitor the market following an improvement in foreign investors\u2019 ability to repatriate returns from the country, it said<\/a> yesterday. <\/p>\n

Remember: <\/strong>Egypt was put on the watch list back in October<\/a>. The country is at risk of being demoted from \u201csecondary emerging market\u201d to \u201cunclassified,\u201d a move which could see Egyptian equities deleted from the provider\u2019s indexes.<\/p>\n

Things are looking up: <\/strong>\u201cMarket participants report that previous delays in the ability of international institutional investors to repatriate capital from Egypt have been addressed\u201d following the USD 35 bn Ras El Hekma agreement and USD 8 bn IMF package, FTSE said.<\/p>\n

The verdict will be out in three months:<\/strong> FTSE Russell will provide an update on Egypt\u2019s watch list status by the end of June 2024, it said.<\/p>\n

HAPPENING TOMORROW-<\/p>\n

<\/a> #1- The IMF\u2019s Executive Board is set to give the final thumbs up to our <\/strong>USD 8 bn package<\/a><\/strong> with the fund tomorrow<\/strong>, a government source confirmed to Enterprise earlier in the week.<\/p>\n

<\/a> #2- Egypt says goodbye to JPMorgan Chase\u2019s Emerging Local Markets Index Plus: <\/font><\/strong>Starting today, the country is out of the lender\u2019s indices that track total returns for local currency denominated funds market instruments in EMs due, after a decision<\/a> made by the bank at the start of the year. <\/p>\n

But hopefully not for long:<\/strong> JPMorgan Chase made the decision before the EGP float, pointing to the then-persistent FX shortage of the country and we\u2019re yet to hear if they\u2019ve decided to reverse the decision now that FX liquidity has come rushing back after liberalizing the pound.<\/p>\n

HAPPENING NEXT WEEK-<\/p>\n

<\/a> #1- FY 2024-25 draft budget to head to the House:<\/strong> The draft of the state budget and the first ever Public Government Budget for the next fiscal year will be presented to the House on Sunday after they were greenlit by cabinet yesterday, according to a cabinet statement<\/a>.<\/p>\n

Updated revenues and expenses:<\/strong> The Public Government Budget pencils in revenues of EGP 5.1 tn and expenses of EGP 6.4 tn for the next fiscal year \u2014 up from initial projections of EGP 4 tn and EGP 4.9 tn from an Ittihadeya statement a day earlier.<\/p>\n

ICYMI: Budget season is going to be a bit different this time round<\/strong>, with the issuing of the first Public<\/a>Government Budget<\/a>. The new budget \u2014 which does not replace the state budget \u2014 shows the budgets of all the state\u2019s economic bodies in addition to the state budget collated together. The first phase includes some 40 economic<\/a>bodies<\/a>.<\/p>\n

Other key targets in the draft budget include:<\/strong><\/p>\n