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Egypt cuts projected deficit to 8.9% in new 2015/2016 draft budget

Ahram Online , Wednesday 1 Jul 2015
Minister of Finance Hani Qadri
Minister of Finance Hani Qadri (Photo: Al-Ahram)
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Egypt has amended the draft budget for the 2015/2016 fiscal year to slash the projected deficit to 8.9 percent of GDP, according to a new budget statement published on the Ministry of Finance website.

An earlier draft which put the budget deficit at 9.9 percent had been rejected by Egypt's president Abdel Fattah El-Sisi, on grounds that its target deficit was too high, according to media reports.

Officials have said that the government will continue to operate with the 2014/2015 budget until the budget for the current fiscal year, which began on Wednesday, is ratified by the president.

Projected public expenditure was cut to LE864 billion ($113 billion) from LE885 billion in the last draft, as wages were reduced by LE10 billion to total LE218 billion.

Projected revenues were raised to 622 billion pounds ($81.5 billion) from 612 billion pounds in the previous draft.

Egypt has set a five-year macroeconomic plan that aims to cut the state budget deficit to 8 to 8.5 percent by 2018/2019 by reducing fuel subsidies and introducing new taxes.  

International credit rating agency Moody's had labelled the previous draft budget as “credit negative” for slowing reform. 

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