Egypt's Finance Minister, Ahmed Kujuk, has announced that the government is preparing a new economic program to be discussed with experts and the business community. This program will be implemented after the current program agreed upon with the International Monetary Fund (IMF) comes to an end. The new program aims to foster dialogue and collaboration between the government, experts, and the business community.
During a meeting with the American Chamber of Commerce in Cairo, Minister Kujuk emphasized that Egypt's relationship with the IMF goes beyond just securing financing and loans. He highlighted that there are other dimensions to this relationship, including technical assistance. Additionally, Egypt has a strong program in place with the World Bank and the European Union.
Minister Kujuk reported that Egypt's financial indicators have shown improvement, partly due to the growth of the domestic product and the economy, as well as the government's commitment to financial discipline. He confirmed that the government has not deviated from its targets during the year. The minister also revealed that initial indicators suggest that the government's central debt will decrease to less than 82% of the gross domestic product during the current fiscal year.
The minister aims to reduce the debt to 78% during the next year. He also announced that the tax revenue has increased by about one percentage point of the domestic product, without imposing new taxes or additional burdens on taxpayers. The improvement in financial performance was mainly supported by the private sector and companies operating in Egypt, along with maintaining financial discipline.
Minister Kujuk stated that the increase in tax revenue was achieved through simplifying procedures, facilitating them, and improving voluntary compliance. He also mentioned that Egypt's external debt in the budget sector has decreased by about $6 billion during the past three years, compared to a previous commitment to reduce it by $1-2 billion. This reflects the government's commitment to its pledges to markets and investors.
The minister added that the Ministry of Finance has maintained its plan for international issuances at a level ranging between $3-4 billion, despite the possibility of increasing issuances, to enhance market confidence in the state's financial targets. He also confirmed the improvement in financial transparency indicators and the availability of data according to international standards.
Minister Kujuk highlighted that about 1.5 million real estate units have been voluntarily registered through the electronic system for real estate tax, and the government is working to develop the digital system to reduce compliance costs and improve service quality. He also revealed that the ministry has received about 400,000 requests to settle tax disputes internally, with nearly half of these requests already settled.
Key points
- The new economic program aims to foster dialogue and collaboration between the government, experts, and the business community.
- Egypt's financial indicators have shown improvement, partly due to the growth of the domestic product and the economy.
- The government has maintained its commitment to financial discipline and aims to reduce the debt to 78% during the next year.
