Egypt’s Minister of Finance, Ahmed Kouchouk, presented in August key financial performance metrics and achievements for Fiscal Year (FY) 2023/2024, which concluded on June 30, 2024. During a press conference, Kouchouk noted that improving public services will be a top priority for the upcoming year.
Current IMF Engagement
Egypt is engaged in a 46-month loan agreement with the International Monetary Fund (IMF), which is set to guide the country’s economic strategy until September 2026.
Major Goals and Objectives
Resource Optimization: Enhancing financial space to boost spending on human development.
Fiscal Priorities: Adjusting public spending to address social needs and support economic reforms.
Investment Focus: Increasing private sector investment, particularly in industry and exports, and reducing government debt.
Debt Management: Aiming to lower the debt-to-GDP ratio to below 85% by the end of FY2024/2025 and reduce debt service costs to 35% of total expenditures.
Market Expansion: Entering new markets and restoring Egypt’s credit rating.
Spending Highlights
Decent Life Initiative: EGP 500 billion was allocated to improve living conditions for half of Egypt’s population.
Education and Healthcare: Spending increased by 25% and 24%, respectively.
Social Protection: Allocations more than doubled compared to FY2020/2021, reaching EGP 550 billion.
Subsidies: Support for petroleum products and food commodities rose to over EGP 165 billion and EGP 133 billion, respectively.
Pensions: EGP 35 billion was allocated to “Takaful and Karama” pensions.
Export and Industrial Support: EGP 12.9 billion for export incentives and EGP 11 billion for industrial production.
Health Insurance: Increased from EGP 1.9 billion to EGP 3.4 billion.
Housing and Utilities: EGP 10.2 billion for low-income social housing and EGP 3.5 billion for natural gas services.
Growth Metrics
Tax Revenues: Increased by 30% despite no new taxes, with revenues directed towards health, education, and social protection.
National Revenue: Grew by 60%, exceeding expenditure growth.
Non-Tax Revenue: Up by 190%, driven by the Ras El Hekma deal.
Key Achievements
Green Vehicle Initiative: Over 28,000 new cars were delivered with a green stimulus exceeding EGP 718 million.
Export Support: EGP 65 billion in support to over 3,000 companies.
Investment Support: EGP 80 billion allocated to 2,527 investors.
Fiscal Efficiency: Reduced budget deficit to 3.6% and achieved a primary surplus of 6.1%.
Debt Management: Decrease internal and external debt to budget agencies by over $3.5 billion.
Bond Yields: Reduced yields on international bonds and insurance rates against default risks.
Market Developments: Issuance of Chinese Panda Bonds and Japanese Samurai Bonds at low costs.
