In a significant move aimed at bolstering the Egyptian economy, Ahmed Kojouk, the Minister of Finance, announced that the government has allocated 78.1 billion pounds for the upcoming fiscal year 2025/2026 budget. This allocation is designed to support initiatives and programs that focus on enhancing industrial, manufacturing, and priority sectors, as outlined in a recent statement from the ministry.
The budget proposal, which received approval from the Council of Ministers in a meeting led by Dr. Mostafa Madbouly, is set to be forwarded to the House of Representatives for further deliberation. It includes estimated revenues of approximately 3.1 trillion pounds and expenditures of about 4.6 trillion pounds. The government aims to achieve a primary surplus of around 4% of the gross domestic product while working towards reducing the general budget deficit.
Kojouk highlighted that the allocations are particularly targeted at supporting the tourism sector, with a significant 8.3 billion pounds earmarked for this purpose. Additionally, 5 billion pounds will be directed towards priority industrial activities, along with 3 billion pounds designated for converting vehicles to operate on natural gas. The budget also includes cash incentives ranging from 3 to 5 billion pounds aimed at medium, small, and micro enterprises, as well as 1 billion pounds to facilitate the provision of natural gas-powered taxis and transport vehicles for young people.
In his remarks, Kojouk described the budget allocations as "foundational" to fostering growth in industry, manufacturing, and tourism, aligning with the government's broader economic goals. He emphasized that these measures are intended to enhance the competitiveness of the Egyptian economy, stimulate investment, and deepen local manufacturing capabilities.
The Minister noted that the budget reflects a clear and explicit vision for economic development, supporting initiatives that are critical to the country’s growth trajectory. He stated, "The expenditure estimates for the investment project for the new fiscal year are consistent with the state's efforts to enhance the competitiveness of the Egyptian economy by stimulating investment, developing industry, and deepening local manufacturing."
Kojouk's announcement comes at a time when the Egyptian economy is grappling with various challenges, including inflation and currency fluctuations. However, the government remains optimistic about the potential for growth, particularly in the tourism sector, which has been identified as a key driver of economic recovery.
The government’s focus on tourism is particularly noteworthy, given the sector's vital role in the national economy. The allocation of 8.3 billion pounds for tourism support is expected to facilitate initiatives aimed at attracting more visitors to Egypt, thereby boosting revenue and creating jobs.
Furthermore, the emphasis on natural gas vehicle conversion is part of a broader strategy to promote environmentally friendly transportation options while reducing reliance on traditional fuels. By investing in this area, the government aims to encourage the adoption of cleaner technologies and enhance energy efficiency across the transportation sector.
This budget proposal is seen as a reflection of the government's commitment to economic reform and development, aiming to create a more sustainable and resilient economy. As the fiscal year approaches, stakeholders from various sectors are keenly observing how these allocations will translate into tangible benefits for the economy and the populace.
In summary, the new fiscal year budget highlights the Egyptian government's strategic focus on enhancing the competitiveness of its economy through targeted investments in key sectors. With substantial allocations for tourism, industrial activities, and environmentally sustainable initiatives, the government is laying the groundwork for a more robust economic future.
