Egyptian budgetary responses to COVID-19 and their social and economic consequences

Abstract

PurposeThis paper discusses the impact of COVID-19 pandemic on the Egyptian economy and Egyptian government's budgetary responses to the pandemic.Design/methodology/approachThe authors undertake a critical analysis of Egyptian government's economic and social interventions in response to the COVID-19 pandemic, the funding of these interventions and their short- and long-term implications.FindingsThe analysis shows that the Egyptian government's response to the pandemic will shrink Egypt's fiscal space significantly as increased borrowing and debt service obligations are not offset by the levying of corona tax on salaries and wages. However, increased taxation will impact negatively on poverty. The authors show that social interventions such as cash transfers are not provided at a level which will make an impact on alleviating poverty. The authors highlight increased spending on health as well as the adoption of a gender perspective in the response to the pandemic as positive outcomes with potential for future societal impact.Originality/valueThe authors highlight the Egyptian government's budgetary response to the COVID-19 pandemic and the economic and social implications of this response.