Egypt deficit to reach 10 per cent: finance minister

Ahram Online, Thursday 5 May 2011

Egypt's state budget deficit, bloated after political turmoil rocked the economy, is forecast to widen to 10 per cent

Cafe in Cairo
A waiter prepares a water pipe for a customer in Cairo (Reuters/Suhaib Salem)

Egypt's state budget deficit is forecasted to widen to 9.1-10 per cent of gross domestic product (GDP) in the 2011/12 fiscal year, the country's finance minister has said.

Samir Radwan added in a press conference Wednesday night that budget spending will reach LE509 billion, with GDP growth estimated at 2.1 per cent.

That compares with an expected deficit of about 8.5 per cent for the 2010/11 fiscal year ending 30 June.

The subsidies budget is also expected to grow to LE197.5 billion, compared to the current year's LE124 billion. Wages are expected to grow in the new budget.

With Egypt's economy tottering, the country's finance minister had flown as part of an Egyptian financial delegation in search of $10 billion of funding to shore up tumbling tourism and export revenues.

 

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