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Finance: Wages increase to 361 billion pounds, 11.4% over the current year’s estimates


Minister of Finance .. On the occasion of delivering the financial statement in the House of Representatives:


The new budget improves the livelihood of citizens despite the "Corona" crisis


All segments of society benefit from the proceeds of development .. We continue to improve the infrastructure and facilities


Supporting productive activities and groups most affected by the pandemic ... to enhance the capacity of the national economy


We aim to achieve a growth rate of 5.4% for GDP, a first surplus of 1.5%, and reduce the total deficit to 6.7%.


The volume of expenditures during the next fiscal year is 1.8 trillion pounds, and revenues 1.365 trillion pounds


27.6% An unprecedented increase in government investments ... to maximize spending on development projects


4.2 billion pounds "export subsidies" ... to provide cash liquidity to exporting companies and preserve employment


EGP 10 billion to subsidize gas and electricity prices for industry and EGP 2.1 billion for the initiative to "convert old cars to work with natural gas"


2.5 billion pounds for the incentive to develop pre-university education and 1.5 billion pounds for workers in the Administrative Capital

Increasing the quality incentive by half a billion pounds for faculty members and their assistants in universities, centers, institutes and research bodies


321 billion pounds for subsidies, including 87.2 billion for food commodities, 19 billion pounds for security pensions and “Takaful Dignity” and 7.8 billion pounds for cash support and utilities for social housing


180 billion pounds to pay the annual installment of the Insurance and Pensions Fund, in implementation of the agreement to disentangle the entanglements


7 billion pounds for treatment at the expense of the state and the completion of comprehensive health insurance in 5 governorates

 

The government has submitted to the House of Representatives 57 laws “linking budgets” for the next fiscal year, which include: “the law of linking the state’s general budget, 55 laws for economic bodies, and a law for the National Authority for Military Production”; In preparation for discussing it, and taking the necessary actions regarding it.

 

Dr. Mohamed Maait, Minister of Finance, confirmed that the draft state budget for the fiscal year 2021/2022 reflects the presidential directives to maximize aspects of public spending to raise the standard of living of citizens and the services provided to them, despite the challenges posed by the Corona crisis, through continuous efforts to improve quality Infrastructure, facilities, and promoting human development, especially in the health and education sectors, and supporting some national projects, such as the National Project for the Development of the Egyptian Countryside, along with continuing support for productive activities and groups most affected by the pandemic, without prejudice to the sustainability of budget and debt indicators, to enhance the capacity of the national economy; In the medium term, we aim to record a growth rate of 5.4% for GDP, reduce the total deficit to 6.7% of GDP, and achieve a first surplus of 1.5% to ensure the stability of the budget system debt to the GDP by the end of the next fiscal year.

 

In a press release on the occasion of the presentation of the financial statement on the budget for the fiscal year 2021/2022 in the House of Representatives, the minister explained that the state’s general budget, “the state's administrative apparatus, local administration, and public service bodies” totaled its total expenditures, according to estimates for the next fiscal year, about 1.8 trillion. While the total estimated revenues amounted to 1.365 trillion pounds, pointing out that the financial allocations for public investments are witnessing an unprecedented increase to reach 358.1 billion pounds, with a growth rate of 27.6% to ensure the improvement of services provided to citizens; In order to translate presidential directives to maximize spending on development projects, in a manner that would help accelerate the implementation of the goals of "Egypt Vision 2030"; In order to lay the foundations for comprehensive and sustainable development.

 

The minister said that 4.2 billion pounds had been allocated to support and develop exports, in addition to the 6 billion pounds being paid to banks by the installment of the early cash repayment initiative, 85% of the arrears dues to exporters. Reflecting the government's keenness to support the export sector in facing the Corona crisis; As one of the pillars of the national economy, through the earnest endeavor to expedite the repayment of the late export burdens of the exporting companies at the Export Development Fund; In a way that contributes to providing cash liquidity that enables it to fulfill its obligations to its customers and to preserve employment in light of the "pandemic", pointing to the progress in implementing the initiative "immediate cash payment to support the government to exporters", which started its second phase on February 7, 2021, after the success of the first phase, And increase the desire of exporting companies to benefit from them.

 

The minister added that 10 billion pounds had been allocated to support gas prices and reduce the price of electricity for the industrial sector, and 2.1 billion pounds for the initiative to convert obsolete cars to work with natural gas.

 

The Minister affirmed that EGP 180 billion has been allocated to pay the annual installment due in favor of the Social Security and Pensions Fund, within the framework of the implementation of the disengagement agreement with the Ministry of Social Solidarity to pay the insurance fund dues accumulated over half a century, in light of the Social Insurance and Pensions Law No. 148 of 2019; In a way that ensures the provision of the necessary financial liquidity to serve pensioners, their beneficiaries, and the insured, and to fulfill all of their obligations.

 

The minister added that the draft budget for the new fiscal year includes an increase in the wages section allocations and workers compensation to 361 billion pounds, 11.4% of the projected estimates for the current fiscal year to improve the conditions of workers in the state, with the aim of directing the largest part to improve the wages of middle-grades employees, and the incomes of workers in both sectors. Health and education, in addition to granting incentives and transportation allowances for workers in the Administrative Capital at a cost of 1.5 billion pounds, indicating that 2.5 billion pounds were allocated for the incentive to develop pre-university and general and Azharian education for kindergarten, first, second, third and fourth primary grades, and to increase the quality incentive for faculty members, And their assistants in universities, centers, institutes and research bodies, at an additional annual cost of half a billion pounds.


He pointed out that the new draft budget includes allocating 321 billion pounds for support, including: 87.2 billion pounds to support food commodities, and 19 billion pounds for security pensions and the "Takaful and Dignity" program; This allows the provision of monthly cash support to more than 3.6 million families from the lowest income families, allocating 7 billion pounds to treat citizens at the state's expense, and extending the umbrella of the comprehensive health insurance system to the governorates of Luxor, Aswan, Ismailia, Suez and South Sinai, and 7.8 billion pounds ”for cash support Utilities Support »for Social Housing; In order to contribute to alleviating the burdens on the citizens.

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