Cairo – Mubasher: Egypt's House of Representatives has approved a new budget for the fiscal year (FY) 2024/2025, increasing public expenditures by approximately 29% year-on-year (YoY) to EGP 3.87 trillion, or 22.60% of GDP, Finance Minister Mohamed Maait announced.

Public revenues are set to increase by 8.50% YoY to EGP 2.60 trillion in FY24/25, representing 15.40% of GDP, Maait added, according to a cabinet statement.

The minister noted that the total budget deficit is expected to reach EGP 1.20 trillion, or 7.30% of GDP, in FY24/25, up from EGP 555 billion, or 4% of GDP, in FY23/24.

He said that the government aims to achieve a primary surplus of EGP 591.40 billion, or 3.5% of GDP, in FY24/25, down from EGP 805.10 billion, or 5.75% of GDP, in the current FY that is set to end on 30 June 2024.

This includes the impact of collecting $12 billion from the Ras El Hekma City development project for the public treasury, a non-recurring resource, which makes up 50% of the project’s total revenues, Maait revealed.

Maait highlighted that constitutional requirements for health and education spending have been met. Allocations include EGP 496 billion for health, EGP 565 billion for pre-university education, EGP 293 billion for higher education, and EGP 140.10 billion for scientific research.

Wage allocations rose to EGP 575 billion in FY24/25 from EGP 494 billion in FY23/24, accommodating a recent wage package that raised the monthly minimum wage by 50% to EGP 6,000.

Support, grants, and social benefits are set at EGP 635.90 billion in FY24/25, up 19.30% from EGP 532.80 billion the year before. This includes EGP 154.50 billion for petroleum subsidies, EGP 134.20 billion for food supplies, and EGP 40 billion for social security and pensions.

Other allocations include EGP 11.90 billion for social housing, EGP 3.50 billion for natural gas delivery to homes, EGP 18.40 billion for health insurance and treatment of the indigent, and EGP 2.40 billion for the universal health insurance system in certain governorates.

Investment allocations are projected to rise to EGP 496 billion in FY24/25 from EGP 334 billion in FY23/24, with 44% of these investments being self-financed, ensuring no impact on the budget deficit. A maximum limit of EGP 1 trillion has been set for public investments for all state agencies in the new FY, which is set to start on 1 July 2024.