Egypt raises its wage budget to $12 billion in the next fiscal year

Egypt raises its wage budget to $12 billion in the next fiscal year

Egyptian Minister of Finance, Mohamed Maait, stated that wage allocations in the 2024/2025 budget will increase to 575 billion Egyptian pounds (approximately 12 billion dollars) to accommodate the recent package for state employees, including a 50% raise in the minimum wage to reach 6,000 pounds monthly (about 125 dollars).

In a financial statement presented to the House of Representatives, Maait clarified that significant amounts have been allocated for social support and grants, totaling 636 billion pounds (around 13.2 billion dollars).

The Minister also anticipated an increase in investment allocations to reach 496 billion pounds compared to 334 billion pounds in the current fiscal year’s estimates.

Maait further predicted that the total budget deficit for the next fiscal year would reach around 1.2 trillion pounds (approximately 25 billion dollars), accounting for 7.3% of GDP, compared to updated estimates for the current fiscal year.

He noted Egypt’s aim to achieve a primary surplus of 591.4 billion pounds (about 12.3 billion dollars), representing 3.5% of the projected GDP for the next fiscal year, compared to an expected primary surplus by the end of the current fiscal year.

Additionally, Egypt targets a 30.5% growth in tax revenues to exceed two trillion pounds (about 41.6 billion dollars).

On her part, Egyptian Minister of Planning and Economic Development, Hala El-Said, announced substantial investments in various sectors such as petroleum and natural gas, urban expansion, and agriculture, totaling approximately 501 billion pounds (around 10.4 billion dollars), aiming to support economic growth, enhance infrastructure, and create employment opportunities.

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