Anticipated: Egyptian Debt to Surpass 90% of GDP, Says Finance Minister

Egyptian Finance Minister Mohamed Maait announced an increase in the level of debt in Egypt as a result of the depreciation of the Egyptian pound, as the level of debt increased to 1.8 trillion pounds.

Egypt’s finance minister expected the debt to reach 95% of GDP in the new budget due to high inflation, which led to an increase in the cost of servicing the debt.

He said the state’s draft general budget for the new fiscal year is focused on restoring economic growth, maximizing the return on the revenue system, expanding the tax base, including the informal economy, and improving primary surplus performance, among other measures that we seek to make a new the budget is part of the vision for the future.

The Minister of Finance added that the current global challenges require us to be self-reliant and work to meet basic needs.

And continued Dr. Muhammad Maait, despite these problems, there are positive indicators achieved, in addition to expectations of achieving positive indicators, including achieving a growth rate of 4.2%, despite the low growth rates in the world.

He added that the results also point to the unemployment rate remaining at 7.2%, which is positive compared to previous figures. positive results in light of the contraction of the economies of other countries.

He added: “Indications indicate that fiscal controls are targeted despite global pressures and that the expected deficit rate in the new budget is 5.8% and the expected overall deficit at the end of the new budget is 4.6% of GDP.

Maait confirmed the increase in spending on subsidies for wheat, oil products and collective protection packages in addition to the increase in wages and pensions, as shown in the first chapter.

Source: Masravi

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