BUDGET WATCH- The government will double its spending on health in the upcoming fiscal year, Prime Minister Moustafa Madbouly said in a meeting with the health and planning ministers last week, without providing a specific figure, according to a cabinet statement. The government allocated EGP 73 bn to the Health Ministry in the FY2019-2020 budget (pdf), suggesting that next year’s spending could rise to as much as EGP 146 bn.

The proposal includes the establishment of 122 hospitals, 35 medical centers, 17 psychiatric hospitals, and eight “same-day” outpatient surgeries, as well as an allocation of EGP 5 bn for emergency services, intensive care, and nurseries.

Education spending could also get a boost next fiscal year: Earmarks for education and research will rise 33% in the FY2020-2021 budget under an investment plan reviewed by Prime Minister Moustafa Madbouly last month. The exact spending figure has yet to be disclosed, but our calculations indicate that the education allocation for next fiscal year would be set at EGP 176 bn with the proposed increase. The government had allocated EGP 132 bn to education in the FY2019-2020 budget. The constitution mandates a spending quota of 10% of GDP for health and education.