Egypt targets 4.3 pct growth in FY2015/16, says ministry

Waad Ahmed , Sunday 14 Dec 2014

In addition to enhancing growth, the government aims to cut the budget deficit from 11 percent to 9.5-10 percent in the coming fiscal year

Ministry of Finance
View of the Egyptian Ministry of Finance in Cairo (Photo: Al-Ahram)

Egypt's government hopes to achieve 4.3 percent growth in the economy in the fiscal year ending 30 June 2016, up from 3.5 percent forecasted this year, the Ministry of Finance has said.

It also plans to cut down the budget deficit to 9.5-10 percent, down from 11 percent projected this year, the ministry added in an emailed statement outlining the upcoming state budget.

Following the inauguration of President Abdel-Fattah El-Sisi in July, the government announced plans to reform the state budget through unpopular subsidy cuts and new taxes. It cut fuel subsidies, raising pump prices by up to 78 percent. The government also started a gradual cut in electricity subsidies.

Property taxes and an exceptional five percent wealth tax were implemented in the current fiscal year while a new value added tax (VAT) is expected to take effect before 30 June 2015.

The new budget for FY2015/16 will follow a programme based policy, where ministries are allocated budgets based on specific planned programmes.

The ministry did not detail specific policies planned to achieve these targets.

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