{"id":647953,"date":"2017-05-24T04:11:38","date_gmt":"2017-05-24T04:11:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/"},"modified":"2017-05-24T04:11:38","modified_gmt":"2017-05-24T04:11:38","slug":"govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/","title":{"rendered":"Gov\u2019t targets primary surplus next fiscal year, sees economic growth at 4.6%"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>The Finance Ministry <\/strong><a href=\"http:\/\/www.mof.gov.eg\/MOFGallerySource\/Arabic\/budget2017-2018\/Financial-Statement-2017-2018.pdf\"><strong>made its budget proposal public yesterday (pdf, Arabic, 146<\/strong><strong> pp)<\/strong><\/a><strong>: <\/strong>The government is targeting a primary surplus of 0.3% of GDP in FY 2017-18 according to the Finance Ministry\u2019s budget proposal (and <a href=\"http:\/\/www.mof.gov.eg\/MOFGallerySource\/Arabic\/budget2017-2018\/analytical_statement17-18.pdf\">financial statement<\/a>) presented to the House of Representatives. The primary surplus is expected to increase to 1.7-2% of GDP in FY 2018-19. Overall the budget deficit is expected to come at 9% of GDP in FY 2017-18, down from the 10.5-10.8% projected for FY 2016-17. For the current fiscal year, the budget deficit for the first nine months <a href=\"http:\/\/www.reuters.com\/article\/egypt-deficit-idUSL8N1IP2SW\">dipped<\/a> to 8% of GDP from 9.4% during the same period last year, the Ministry said. <strong>The budget proposal assumes GDP growth will be no less than 4.6% in FY 2017-18<\/strong>, which would create jobs, lowering the unemployment rate to 11-12% in the same year and to below 10% in the medium term.<\/p>\n<p><strong>The government plans to cut the budget deficit by growing its revenue base 29.6% y-o-y <\/strong><strong>from FY 2016-17\u2019s levels<\/strong>, predominantly through increased tax revenues, compared to a 21.3% y-o-y increase in expenditures. On the revenue side, the base value-added tax rate will rise to 14% from 13% currently, which is expected to increase tax revenues by 0.2-0.3% y-o-y in FY 2017-18. The government will also work on <strong>implementing the civil service act, reform the subsidies regime, and expand cash transfers to qualified welfare beneficiaries<\/strong> in lieu of subsidising commodities. The government will also target reducing the ratio of gross debt to GDP to 95% from the projected rate of 102% in FY 2016-17.<\/p>\n<p><strong>One thing that caught our eye is the government\u2019s plan to completely reshape the <\/strong><strong>subsidy regime by relying proportionally more on cash subsidies.<\/strong> The Finance Ministry plans to cut petroleum product subsidies to 33% of total subsidy spending in FY2017-18 compared. By comparison, petroleum subsidies accounted for 64% of all subsidy spending in FY2011-12. With spending on subsidies already projected to grow by 19.5% y-o-y in FY 2017-18, the additional funds will be allocated towards subsidising electricity and to have the state\u2019s contribution to retirement funds increase to 19% of the total subsidy spending.<\/p>\n<p><strong>Funds earmarked for the Takaful, Karama and other cash-handout programs are set to <\/strong><strong>increase to EGP 15.4 bn<\/strong> in FY 2017-18 from EGP 10 bn a year earlier. This comes despite spending on petroleum products being expected to increase by 214.3% y-o-y in FY 2017-18 because of the increase in average oil prices globally and the drop in the value of the EGP.<\/p>\n<p><strong>The Finance Ministry also says it is committed to maintaining the constitutional spending <\/strong><strong>requirement on health and education<\/strong>, while avoiding accounting tricks that would include reclassifying other items as part of the spending. In total, the Ministry says spending on education, higher education, research, and health will be 10.3% of GDP, slightly higher than the total of 10% of GDP required constitutionally.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Finance Ministry made its budget proposal public yesterday (pdf, Arabic, 146 pp): The government is targeting a primary surplus of 0.3% of GDP in FY 2017-18 according to the Finance Ministry\u2019s budget proposal (and financial statement) presented to the House of Representatives. The primary surplus is expected to increase to 1.7-2% of GDP in [&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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-647953","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"397e9a39-5c81-40a8-8bdd-0fa1413f4a59","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[647947],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Gov\u2019t targets primary surplus next fiscal year, sees economic growth at 4.6% - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t targets primary surplus next fiscal year, sees economic growth at 4.6%\" \/>\n<meta property=\"og:description\" content=\"The Finance Ministry made its budget proposal public yesterday (pdf, Arabic, 146 pp): The government is targeting a primary surplus of 0.3% of GDP in FY 2017-18 according to the Finance Ministry\u2019s budget proposal (and financial statement) presented to the House of Representatives. The primary surplus is expected to increase to 1.7-2% of GDP in [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-24T04:11:38+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Gov\u2019t targets primary surplus next fiscal year, sees economic growth at 4.6%\",\"datePublished\":\"2017-05-24T04:11:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\"},\"wordCount\":474,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/05\/24\/govt-targets-primary-surplus-next-fiscal-year-sees-economic-growth-at-4-6\/\",\"name\":\"Gov\u2019t targets primary surplus next fiscal year, sees economic growth at 4.6% - 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This is the first time the debt target for next fiscal year has been revised since the Finance Ministry in January said it hoped to bring the\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\/5\/101.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563837,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/26\/egypt-beats-budget-deficit-primary-surplus-targets-in-2020-21\/","url_meta":{"origin":647953,"position":1},"title":"Egypt beats budget deficit, primary surplus targets in 2020-21","author":"enterpriseam admin","date":"26 July 2021","format":false,"excerpt":"Egypt\u2019s primary surplus, budget deficit beat expectations in 2020-2021: Egypt recorded a primary surplus of 1.4% of GDP, or around EGP 93.1 bn, during FY2020-2021, Ittihadiya said in a statement yesterday.This is comfortably higher than the 0.9% targeted by the government and better than the IMF\u2019s expectations for a 1%\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/247.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":544781,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/21\/govt-lowers-fy-2022-2023-budget-targets-as-ukraine-conflict-strains-finances\/","url_meta":{"origin":647953,"position":2},"title":"Gov\u2019t lowers FY 2022-2023 budget targets as Ukraine conflict strains finances","author":"enterpriseam admin","date":"21 March 2022","format":false,"excerpt":"FinMin trims budget targets as Ukraine conflict weighs on state finances: The Finance Ministry has revised downwards its fiscal targets for FY 2022-2023 as rising commodities prices put pressure on public finances, according to figures published in an Ittihadiya statement yesterday evening.Deficit still on course to narrow: The government now\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/3\/272.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597662,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/13\/budget-deficit-unexpectedly-narrows-in-fy-2022-2023-finmin\/","url_meta":{"origin":647953,"position":3},"title":"Budget deficit unexpectedly narrows in FY 2022-2023 -FinMin","author":"enterpriseam admin","date":"13 August 2023","format":false,"excerpt":"The budget deficit narrowed 0.1 percentage points y-o-y to 6.0%","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/8\/549.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":592909,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/12\/finance-ministry-eyes-6-4-growth-in-fy-2020-2021\/","url_meta":{"origin":647953,"position":4},"title":"Finance Ministry eyes 6.4% growth in FY 2020-2021","author":"enterpriseam admin","date":"12 November 2019","format":false,"excerpt":"BUDGET WATCH- FinMin says it\u2019s targeting 6.4% growth, 6.2% deficit next fiscal year: The Finance Ministry is eyeing GDP growth of 6.4% in FY2020-2021, up from a targeted 6% for the current fiscal year, according to the ministry\u2019s preliminary budget statement announced by cabinet yesterday. Local press reports had suggested\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/773.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542862,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/20\/primary-surplus-falls-y-o-y-in-1h2021-2022\/","url_meta":{"origin":647953,"position":5},"title":"Primary surplus falls y-o-y in 1H2021-2022","author":"enterpriseam admin","date":"20 January 2022","format":false,"excerpt":"Egypt generated a EGP 3.2 bn primary surplus in 1H2021-2022, Finance Minister Mohamed Maait said during the weekly cabinet meeting yesterday. The surplus came on the back of an increase in tax revenues, which rose 16% y-o-y, the minister said.The surplus is down on an annual basis, but it\u2019s still\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/248.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/647953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=647953"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/647953\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/647947"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=647953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=647953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=647953"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=647953"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=647953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}