Ministry of Planning to pump 88.1 bln into governmental investments
Minister of Planning Ashraf al-Araby - YOUM7 (Archive)

CAIRO: The Ministry of Planning is expected to pump 88.1 billion EGP in the 2015 fiscal year into government investments, an increase over the 63.7 billion EGP invested last fiscal year, according to media reports.

Al Mal newspaper reported Monday that the ministry is finalizing its proposed governmental investments as a prelude to being approved by the Cabinet in the next few days, according to Farid Ahmed Abdel Aal, head of the regional planning sector of the Ministry of Planning.

The Ministry is also expected to provide 45 billion EGP for the state public revenue, compared to 43 billion EGP in the current fiscal year, and 60 billion EGP pumped into two previous stimulus packages.

The government is expected to provide 17 billion EGP from the National Investment Bank, and 16.1 billion EGP will be provided through aid from Gulf countries and international loans, Al Mal newspaper reported.

The Ministry of Planning also aims to increase the Gross domestic product (GDP) by 10 percent during the next fiscal year, Abdel Aal added.

The Ministry of Finance funded the two previous stimulus packages by cashing Gulf war deposits valued at 60 billion EGP, held at the Central Bank of Egypt since 1991, Amwal Al Ghad newspaper reported.

The stimulus packages were part of a long-term development plan to achieve sustainable development through investment in education, health, infrastructure and technology, according to media reports.

Both of the stimulus packages were enacted with the stated purposed of activating the economy and decreasing budget burdens following the January 25 Revolution and the events of June 30.

The first stimulus package of 29.7 billion was invested in October 2013, used to deliver gas to 800,000 housing units, execute 115 sewage projects, implement 175 water projects, develop 27 railway crossings and bridges, finish the second stage of the subway metro, connect facilities to 35 industrial regions, reclaim 32,000 acres, fix electricity stations, develop health services, and develop 59 hospitals in governorates, Al Ahram Digital reported.

The second stimulus package invested in January 2014 totaled more than 30 billion EGP for developing infrastructure, applying minimum wage rates and increasing teacher and heath sector employee wages, Amwal Al Ghad reported.

The next fiscal year will include 4.6 billion EGP for local development projects, 2.4 billion for the Ministry of Agriculture and 2.7 billion EGP for the Irrigation Ministry, Abdel Aal told the Al Mal business newspaper.

Additionally, 592 million EGP will be allocated for finishing utilities in industrial regions, 13.8 billion EGP for establishing 170 projects including the first stage of the fourth line of the subway, 3.8 billion EGP for the health sector, 5 billion EGP for higher education, 4 billion EGP for pre-university education and 951 million EGP for scientific research, he said.

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