17 August 2022 07:20 PM

President Sisi directs gov't to reduce debt-to-GDP ratio, rationalize spending

Monday، 04 July 2022 - 06:22 PM

President Abdel Fattah El Sisi directed the government on Monday to reduce the debt-to-GDP ratio in the future compared to the current period and rationalize spending, Presidential Spokesman Bassam Rady said.

Sisi's instructions came during his meeting with the economic ministerial group, which includes Prime Minister Mostafa Madbouli, Governor of the Central Bank of Egypt Tarek Amer, Planning and Economic Development Minister Hala El Said, International Cooperation Minister Rania Al-Mashat, Trade and Industry Minister Nevin Gamea, Finance Minister Mohamed Maait, Minister of Public Business Sector Hesham Tawfik, and Director of the General Intelligence Service Abbas Kamel.

The president directed the group to do more to improve the state's financial performance, focus on supporting the social protection programs and boosting investments as well as continue to spend on the education and health sectors.

Reviewing indicators of the country's financial performance during the fiscal year of 2021/2022, Sisi was briefed on the general budget's performance as the revenues increased by around 20% and the expenses by nearly 15%.

The budget achieved a primary surplus worth EGP 97 billion, hitting 1.3% of GDP. This is the fourth year in a row for the budget to achieve a primary surplus.

The budget deficit dropped to stand at 6.1% compared with 6.8% in FY2020/21, while the value of debt service reduced from 35.8% to 32.8% of the GDP in the same period.

The president also followed up on the Finance Ministry's plan to reduce the debt of the state's public budget agencies in the coming period.


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