Latest news with #StateOwnershipPolicyLaw
Egypt Today
19 hours ago
- Business
- Egypt Today
Egyptian parliament approves of new national budget plan, gov't seeks 4.5% growth next year
Cairo – June 18, 2025: Egypt's House of Representatives has endorsed the national budget and economic development framework for FY2025/2026, setting a target for real GDP growth of 4.5 percent. This represents a significant increase from the 2.4 percent growth recorded in FY2023/2024. Planning Minister Rania Al-Mashat presented the plan amid ongoing regional uncertainties, noting that preliminary indicators from the first nine months of the current fiscal year signal improving economic performance. She highlighted that the plan focuses on structural reforms and concentrated investment to navigate these complex conditions. Public investment in the upcoming fiscal year is projected at approximately LE 1.158 trillion, up from about LE 1 trillion allocated in FY2024/2025. Nearly 28 percent of this amount—LE 327 billion—is dedicated to human development sectors, including health, education, and social services. The state budget will contribute LE 219 billion toward these areas. The government reiterated its commitment to the Haya Karima (Decent Life) initiative aimed at rural development, with phase one receiving LE 350 billion to improve living conditions for 18 million residents in over 1,400 villages across 20 governorates. The second phase allocates funds for essential infrastructure and expanding universal health insurance. In line with its reform agenda, the government plans to reduce direct state involvement in the economy. A new State Ownership Policy Law, recently passed by parliament, encourages greater private sector participation. Meanwhile, a review is underway to restructure 59 economic authorities, determining their future status through a committee supported by technical expertise. To enhance governance and investment management, the Adaa system—tracking 4,000 performance metrics across 36 ministries and agencies—will be further expanded. Training is ongoing to help public entities utilize a centralized digital platform covering 270 state-owned companies, aiming to improve transparency and efficiency. Funding for land compensation related to national projects has increased to LE 16 billion for the combined fiscal years FY2024/2025 and FY2025/2026, with more than LE 3.4 billion allocated to projects in Giza. Additionally, the government plans to conduct a new economic census via the Central Agency for Public Mobilization and Statistics (CAPMAS) to better capture informal economic activity and inform policy decisions. Minister Al-Mashat stressed that the plan's formulation took place amid 'delicate circumstances' worsened by rapid regional developments. She called for flexible planning and continuous monitoring to adapt to evolving conditions, while expressing gratitude for parliament's thorough review and constructive input.
Al-Ahram Weekly
2 days ago
- Business
- Al-Ahram Weekly
Egypt targets 4.5% growth amid regional uncertainty, boosts public investment to EGP 1.15 tln - Economy
Egypt's parliament has approved the national budget for fiscal year 2025/26, which begins on 1 July. The budget sets a real GDP growth target of 4.5 percent, nearly double the 2.4 percent growth recorded in FY2023/24. The Ministry of Planning, Economic Development, and International Cooperation (MOPEDIC) stated that growth in the first nine months of the current fiscal year has also improved, based on preliminary data. Planning Minister Rania Al-Mashat presented the government's economic and social development plan to address regional instability and economic challenges through structural reforms and targeted investment. Public investment priorities The new plan allocates EGP 1.158 trillion in public investment — up from about EGP 1 trillion in FY2024/25 — with a focus on human development sectors such as health, education, and public services, which will receive EGP 327 billion or 28 percent of the total. Of this, EGP 219 billion will come directly from the state budget. Sectoral allocations include: EGP 85.6 billion for health EGP 63.4 billion for education EGP 178 billion for other social services Rural development and Decent Life initiative The government reaffirmed its support for the Haya Karima (Decent Life) programme, which targets rural development. Phase one has received EGP 350 billion to serve 18 million people in 1,477 villages across 20 governorates. Phase two includes EGP 25 billion for water, sewage, and utilities infrastructure and EGP 20 billion for expanding universal health insurance. State ownership and public sector reform The budget also reflects the government's ongoing push to reduce its footprint in economic activities. A new State Ownership Policy Law, approved by parliament, aims to increase private sector participation — part of a broader reform agenda endorsed by the Supreme Council for Investment. A review is underway to restructure 59 economic authorities, with assessments to determine whether entities should be merged, dissolved, or reclassified. A high-level committee with technical support oversees the process. Governance and investment efficiency Al-Mashat said the government would continue to cap public investment to support macroeconomic stability and encourage foreign investment. Efforts include training public bodies to manage investment data through a centralized digital platform covering 270 state-owned companies. The government has also expanded the Adaa performance evaluation system, which now tracks 4,000 performance indicators across 36 ministries and public bodies. The system allows for quarterly evaluations aligned with sustainable development and fiscal goals. Land compensation and economic data Funding for land compensation related to national projects has increased to EGP 16 billion for FY2024/25 and FY2025/26 — up from EGP 12.35 billion in the previous year. Over EGP 3.4 billion of these funds will serve projects in Giza. Egypt plans to launch a new economic census via the Central Agency for Public Mobilization and Statistics (CAPMAS) to improve policymaking and better understand the informal economy. The census will map economic activity and the contribution of unregistered enterprises. Follow us on: Facebook Instagram Whatsapp Short link:
