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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.

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