Egypt’s President Abdel Fattah Al-Sisi directed speeding up implementation of digital transformation and financial inclusion, which contributes to improving the financial performance of the state.
The president also directed achieving financial discipline in the general budget, while taking all measures to ensure a financial and economic safe track
Al-Sisi’s remarks came during his meeting with Prime Minister Mostafa Madbouly, and Minister of Finance Mohamed Maait, on Tuesday. He followed up on indicators of the financial performance of the state’s general budget.
The digital transformation will also enhance the modernized tax procedures which contribute to improving the business climate in Egypt and encouraging economic activity, as well as ensuring the full and accurate collection of state revenues by limiting the informal economy, in line with achieving the principle of governance and optimal management of state resources.
In the same context, the President directed the completion of the mechanization of salaries and labor income taxes for all budgetary agencies and economic bodies by the end of the current financial year, as well as the speedy completion of the implementation of the value-added tax refund project for tourists with the aim of encouraging shopping tourism in Egypt.
During the meeting, the financial results from July 2021 to March 2022 were reviewed, according to the president’s spokesperson Bassam Rady.
The report stated that 2022’s finial results witnessed a significant improvement compared to last fiscal year, the total deficit to GDP decreased to 4.9%, and tax revenue increased by 12.8%, in addition to maintaining the budget’s achievement of a primary surplus, which are indicators that were achieved despite the significant increase in allocations for all expenditure sections to provide all the necessary needs for the state’s different sectors, including the health sector which was provided by over $4bln (EGP 84bn).
Maait also reviewed the most prominent results of the Ministry of Finance delegation’s visit to Washington in order to attend the Spring Meetings of the International Monetary Fund.
He pointed out that the International Monetary Fund raised its estimates of GDP growth in Egypt by the end of the current fiscal year to 5.9%, especially in light of the international financial institutions’ stabilization of the credit rating as well as the future outlook of the Egyptian economy despite all global challenges.
The Fund hailed the protection package to support social security in order to confront the economic repercussions of the Russian-Ukrainian crisis, asserting its full support for Egypt to complete the economic reform system.
Regarding the estimates of performance indicators for the fiscal year 2021/22, the Minister of Finance explained that an initial surplus of EGP 91bn is expected to be achieved, as well as a reduction in the overall deficit to GDP ratio to about 6.2%.
The official spokesman added that the meeting also followed up the efforts of the Ministry of Finance for digital transformation in all government transactions and services, as well as steps to develop and mechanize the tax authority, as well as automating the customs system.
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