The challenges and conditions in the global economy have imposed tremendous pressure on the fiscal budget, whether in terms of rising prices of goods and services, or increasing public expenditure to enhance social protection, improve the standard of living, support and stimulate economic activity to mitigate the negative effects of these challenges.

The government has taken a package of measures to raise the efficiency of public expenditure, ensure optimal utilization of resources, and improve the structure of the state’s general budget, in a way that contributes to achieving sustainable development goals, inclusive growth, and responding to economic development requirements.

In this context, Canada Egypt Business Council and the Egyptian Business Council for International Cooperation held a symposium entitled “The Fiscal Budget and Increasing the Efficiency of Public Expenditure” featuring H.E. Dr. Mohamed Maait; Minister of Finance

In his opening remarks, Mr. Motaz Raslan chairman of CEBC and ECIC mentioned that the government has adopted serious measures to mitigate the effect of the economic changes and strategies to continue progress. He added that these measures relied on prioritizing and working in two parallel tracks. The first is the continued expansion of the umbrella of social protection targeting the most vulnerable. In addition to establishing a higher council for investment headed by  President Abdelfatah El Sisi and granting the golden license, which reflects the state’s keenness to speed up procedures and build a tax and customs system that stimulates business, and increasing support and development of exports and postponing the implementation of new projects with a dollar component, and this of course does not include production and export projects.

Mr. Raslan went on to reveal his aspiration that the year 2023/2024 will be a turning point for the Egyptian economy and a beginning to get out of the successive challenges that it has gone through over the past four years, which prompted the government to put forward the current budget for societal dialogue to exchange visions and exchange of idea between the state and the citizen to reach alternatives and solutions to these issues.

Then the floor was given to H.E. Dr. Mohamed Maait; Minister of Finance as he stressed that we are dealing realistically with global and local challenges and we are working on many alternatives he stated. “In order to contain external and internal shocks, and work to mitigate the exceptional repercussions as much as possible, especially the societal groups and economic activities most affected by the unprecedented wave of inflation that extended to the prices of goods and services and the cost of financing, as a result of the war in Europe in the wake of the Corona pandemic, he stated.”

He explained that the recent presidential decisions issued by the first meeting of the Supreme Investment Council headed by President Abdel Fattah El-Sisi give a strong push to private investments and guarantee competitive justice in the Egyptian market, as it includes making a legislative amendment to cancel tax and customs exemptions and other preferential treatment for companies and state-owned entities.

The minister added that we are working on integrated packages of structural reforms that advance efforts, procedures and measures to restore the stability of the Egyptian economy, and start a gradual recovery of macroeconomic indicators before the end of 2023, pointing out that the non-oil commodity balance deficit witnessed a noticeable improvement during the period from July to December 2022 compared to the same period. “The period in 2021 increased by about 14.2%, and a surplus in the petroleum balance was achieved with the growth of oil exports by 109.1% on an annual basis during the last fiscal year, and Egypt’s natural gas exports rose to $500 million per month, the minister explained”

The minister indicated that the revenues of the Suez Canal reached a new record during the fiscal year 2021/2022 by about $7 billion, and net foreign direct investment reached its highest level in 5 years, with a growth rate of 71.4% on an annual basis, recording about $8.9 billion dollars. While revenues from the tourism sector increased during the last fiscal year, reaching $10.7 billion, compared to $4.9 billion in the fiscal year 2020/2021.

The Minister of Finance went on to explain that there is a draft law in the House of Representatives to settle tens of thousands of tax files accumulated for years with a simplified peremptory tax, as was done with small, medium and micro enterprises, within the framework of the state’s keenness to end tax disputes without resorting to the courts, in a way that contributes to providing the necessary cash liquidity. to stimulate production.

He concluded his speech saying that we achieved a primary surplus for the fifth year of 1.3% of GDP in the past fiscal year instead of a primary deficit that lasted for more than 20 years, and we target 2.5% of GDP in the budget for the next fiscal year. “This contributes to creating a financial space to expand the social protection network and mitigate global and local shocks, he added.”

Then the floor was opened for questions and answers where many inquiries and ideas were discussed by a lot of  guests that were attending the seminar.