Back to the complete issue
Monday, 24 May 2021

House pushes ahead with budget debate

The House of Representatives will be discussing the spending plan for individual institutions in the FY2021-2022 state budget throughout this week, according to the House agenda. The Endowments Ministry and Egyptian Competition Authority’s allocations are on MPs’ docket for tomorrow, kicking off the week of budget discussions. At the committee level, the House Agriculture Committee approved yesterday the budgets for institutions under the umbrella of the Agriculture and Land Reclamation Ministry, Al Mal reports.

Next up: At the time of writing, parliament’s schedule showed our representatives meeting Thursday to discuss the budgets for the General Authority for Healthcare; the Universal Healthcare Ins. Authority; the Health Ins. Organization; and the General Authority for Healthcare, Accreditation, and Regulation.

What’s the deadline for a new budget? The House needs to approve the full draft state budget before the start of the fiscal year on 1 July; if it fails to do so, government will keep operating under this year’s budget until a new one is passed — we don’t do US-style “government shutdowns.”

Need a refresher? The Finance Ministry published the draft budget for the upcoming fiscal year last month. Among the highlights: GDP growth is expected to come in at 5.4%, while our financing gap will widen 7.1% y-o-y to EGP 1.06 tn, our budget deficit is expected to narrow to 6.7% of GDP from an expected 7.7% in the current fiscal year, and a 22% growth in revenues will outpace a 14% rise in government spending.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt.