Egypt is targeting GDP growth at 5.5% in fiscal year 2023/24, its Finance Minister Mohamed Maait said in a circular on Saturday.
The circular covers the preparations for the state’s draft general budget for the FY2023/24, which begins in June 2023 and ends in June 2024.
The minister added that despite the unprecedented global economic challenges, Cairo is seeking to achieve a sustainable primary surplus of about 2% on average and to put deficit and debt rates on a downward path.
He stressed that Egypt also aims at narrowing the budget deficit to 5% in the medium term, while targeting a decline in the government indebtedness rate to less than 80% of the GDP by late 2027.
The Finance Ministry said the circular is being published in light of the extraordinary circumstances witnessed by the global economy that are placing extreme pressure on the budgets of countries, including Egypt. The impact has been the unprecedented rise in the prices of goods and services as a result of the high financing costs.
Maait vowed that the global challenges will not hinder the process of building the new republic, the foundations of which were laid by President Abdel Fattah al-Sisi, to help improve the standard of living and improve the services provided to citizens.
The budget also targets the fair distribution of budgetary appropriations while taking into account the response to the requirements of growth and development for all regions and segments of the society.
According to Maait, the budget focuses on development, expanding the social protection network, and addressing the effects of international and local economic challenges in a way that eases the repercussions of global inflation on citizens as much as possible.
It underscores the importance of completing the process of building the new republic, which is based on the optimal utilization of state resources, achieving equal opportunities, and completing the Decent Life Initiative.
The government is committed to meeting the citizens’ needs, reducing the impact of inflation, and achieving economic goals by maximizing financial discipline and the competitiveness of the economy, improving the business environment and simplifying procedures to stimulate investment and achieve high and sustainable growth rates by boosting productivity and export rates, the minister continued.
It targets promoting economic development, focuses on small and medium enterprises and manufacturing industries, expanding the trend towards green transformation, attracting more clean investments by making optimal use of strong infrastructure, and supporting structural reforms so that the private sector can lead development and provide more job opportunities.