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Sunday, 15 March 2020

El Sisi reviews draft FY2020-2021 budget

BUDGET WATCH- President Abdel Fattah El Sisi reviewed the FY2020-2021 draft budget with senior cabinet ministers yesterday, an Ittihadiya statement said. Largely in line with previous estimates, its projections include a primary budget surplus of 2%, a budget deficit of 6.2% of GDP, down from 7.2% in the current fiscal year, and reducing public debt to 80% of GDP by the end of the fiscal year.

The government sees GDP growing at a 6% clip and expects unemployment to fall to 8% during the coming fiscal year, according a 2021 investment plan presented by Planning Minister Hala El Said.

Don’t be surprised if these figures change thanks to current events: As Finance Minister Mohamed Maait and Vice Minister of Finance Ahmed Kouchouk told us last week, the government may need to rethink its economic growth and budget targets if the covid-19 crisis persists over the coming weeks and months.

The government is also planning investment in the healthcare sector as part of its "Nurseries and Families in Intensive Care” initiative, to increase nurseries by 10%, child care services by 90%, and intensive care services by 80%, the statement said, without providing additional detail.

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