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.