The Clap
Minister of Finance Mohamed Maait presented the proposed budget for the FY 2022-2023, which will take effect if the House of Representatives votes in its favor & approved by the President.
Here are the highlights of the budget’s draft:
- The government’s support for oil will reach EGP 28.1 billion, 50% more than the current budget. The government’s total financial support will amount to EGP 356 billion, 11% higher than the current support.
- The government plans to raise its tax revenues to EGP 1.17 trillion, compared to EGP 983 billion in the current fiscal year, an increase of 20%.
- The deficit between revenues and spending is expected to widen to EGP 558.2 billion, compared to a EGP 475.5 billion deficit in the current year’s budget.
- The government estimated the price of a barrel of oil at $80m increasing from the current $60/barrel. The price of brent crude currently hovers around $105/barrel.
Why this matters
As a result of the economic crisis, the government is forced to increase its spending, & has approved a package of financial and social relief last March to mitigate its severity.
