Egypt parliament declares trust in new cabinet programme (FY24/25-FY26/27)
The report will be submitted to the parliament session scheduled for Thursday for discussion and approval.
Egypt’s new government, sworn in by President Abdel-Fattah El-Sisi on 3 July, is expected to gain a vote of confidence from MPs when the House of Representatives reconvenes on Thursday.
The cabinet made an inclusive overhaul, bringing 20 new faces and merging some ministerial portfolios.
As per the report, the government’s programme has all the required elements to achieve its objectives.
Moreover, its action plan aligns with Egypt's commitments under the $8 billion loan programme with the International Monetary Fund (IMF) that concludes in 2027.
Creating a competitive, investment-attractive economy
The committee urged the government to reconsider its budget deficit target set at 6.6 percent in FY2026/2027 and place it in a safe zone between three and five percent to attain a fiscal balance, economic stability, and unsustainable government debt accumulation.
It also called on the government to adopt more strict financial policies to keep the overall debt on a sustainable downward path.
The committee praised the Tax Policies Strategy that outlines Egypt’s tax policies for the coming six months. The Ministry of Finance has designed this policy, which is now being discussed by the National Dialogue and is expected to be offered for a community and expert dialogue soon.
In addition, the committee recommended for this policy to include a reconsideration of the tax system in a way that mitigates the tax burdens on both citizens and businesspersons and contributes to maximizing its revenues to represent 15 percent of the country’s GDP, up from an average of 12 percent over the coming five years.
It also called for legislation stability to attract foreign investments, achieve economic stability, and raise confidence in the Egyptian economy.
Furthermore, the committee urged the government to maximize the non-tax revenues generated from the excesses of the state-owned economic bodies through implementing inclusive and deep structural reforms.
It also called for exploring sustainable solutions to bridge the gap related to foreign exchange liquidity, especially with the international financial obligations elevating on Egypt over the short term.
Meanwhile, the committee urged the Ministry of Planning, Economic Development, and International Cooperation to design a clear vision for managing the loans and finances Egypt secures from the lending institutions and governments, the purpose behind getting these loans, and the mechanisms of spending and repaying them.
It also called for announcing the mechanisms used for negotiating loans.