CAIRO: A total of 55 percent of Egypt’s news public budget for Fiscal Year 2014-15 will be allocated to the social dimensions program, including health, education, scientific research, and developmental projects, Minister of Finance Hany Demian said during his meeting with Ambassador of the European Union in Cairo James Moran Friday.
“Egypt moves steadily toward establishing a state of law,” Demian said. “The new budget includes the expected revenues of the capital market tax and the additional five percent tax that was imposed last month on those gaining more than 1 million EGP annually, along with the real estate tax.”
“Egypt’s new public budget for Fiscal Year 2014-15 will be submitted to President Abdel Fatah al-Sisi next week in order to be approved, an informed source told Youm7 Sunday.
“Employee pensions and other social programs, such as minimum wage, will increase under the new budget,” Demian said. Other reforms which were not amended in the new budget are waiting for the Cabinet’s approval.
During the meeting, Moran congratulated the Egyptian government on presidential elections and expressed their willingness to cooperate with the new government as well as to provide Egypt with financial and technical support. In parallel, Egypt should seek to meet the aspirations of the Egyptian people to live in a democratic, stable, and secure society.
Usually the financial sheet of the new budget is submitted to parliament for discussion but the absence of an elected parliament forces Egypt’s newly elected President Abdel Fatah al-Sisi to endorse it quickly before the new fiscal year starts on July 1.
Accordingly, Egyptians will be deprived of reviewing the budget details that will determine government spending for a full year due to the absence of a parliament to discuss and review the budget before its ratification in a public session.
On May 26, the first day of the presidential election, the Cabinet submitted the budget to former interim President Adly Mansour for formal ratification before implementation in July, a week before Sisi took office.
“Egypt’s public finances are the main weakness for its sovereign credit profile,” Fitch Ratings said in a recent report published May 30. Sisi’s victory in the presidential election does not alter “Fitch’s expectations that the authorities will be cautious in addressing the large fiscal deficit.”