{"id":619048,"date":"2024-04-24T00:00:00","date_gmt":"2024-04-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/24\/egypts-fy-2024-2025-draft-budget-delivered-to-the-house\/"},"modified":"2024-04-24T00:00:00","modified_gmt":"2024-04-24T00:00:00","slug":"egypts-fy-2024-2025-draft-budget-delivered-to-the-house","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/24\/egypts-fy-2024-2025-draft-budget-delivered-to-the-house\/","title":{"rendered":"Egypt\u2019s FY 2024-2025 draft budget delivered to the House"},"content":{"rendered":"

The draft budget is here: <\/strong>Yesterday, Finance Minister Mohamed Maait delivered his budget statement to the House, giving us the first proper look at the draft state and public government budgets (pdf)<\/a> for the next fiscal year. <\/p>\n

ICYMI:<\/strong> Budget season is going to be a bit different this time round, with the issuing of the first Public 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 bodies<\/a>.<\/p>\n

MACRO GOALS- <\/p>\n

Growth to pick up:<\/strong> Economic growth will accelerate to 4.2% in the coming fiscal year, up from an estimated 2.9% in FY 2023-2024, and little above last year\u2019s 3.8%. The figure is 0.2 percent higher than the 4.0% clip<\/a> projected in the preliminary budget report the Finance Ministry released last week.<\/p>\n

We\u2019re in for a significant drop in inflation:<\/strong> Headline inflation will average 17.9% over the 12-month period, down from a projected 35.7% this fiscal year, according to the document. This is slightly below the 18.1% the government penciled in in the preliminary budget.<\/p>\n

Oil prices to go down: <\/strong>The government sees Brent crude prices averaging USD 82 per barrel from July 2024 through to June 2025, down from a projected USD 85 a barrel this fiscal year.<\/p>\n

Wheat prices remain flat: <\/strong>The government is expecting wheat prices through the 12-month period to average at USD 280 a ton \u2014 the same level throughout FY 2023-2024.<\/p>\n

MONEY IN, MONEY OUT- <\/p>\n

Taxpayers are still chipping in the most to revenues:<\/strong> The state sees revenues rising some8.5% to 2.6 tn in FY 2024-2025, up from an estimated EGP 2.4 tn this fiscal year. Most of these revenues are made up of taxes, which are expected to log in at EGP 2.0 tn next fiscal year, amounting to some 77.0% of total revenues. That\u2019s above this year\u2019s projected EGP 1.6 tn, according to the document. Non-tax revenues are expected to fall in the next fiscal year to EGP 603.2 bn, down from the EGP 869.7 bn forecasted for this fiscal year.<\/p>\n

Expenses are<\/strong> on the rise as well:<\/strong> Spending for the upcoming fiscal year is projected to increase to EGP 3.9 tn next year, up from EGP 3 tn this fiscal year, with most of the spending allocations going towards interest payments, social support, and investments:<\/p>\n