Egypt boosts consumer subsidies in 2011-12 budget

Reuters, Wednesday 1 Jun 2011

Government plans to spend LE22.4 billion to make consumer goods more affordable while raising fuel subsidies to LE99 billion

Egypt's annual budget approved by the cabinet on Wednesday foresees a 26 per cent increase in subsidies of consumer commodities such as basic foodstuffs and fuel.

The government plans to spend LE22.4 billion ($3.77 billion) in the 2011-12 fiscal year to make consumer goods more affordable for the population, according to figures given by Finance Minister Samir Radwan.

Separate fuel subsidies for consumers will rise to LE99 billion, an increase of LE31.3 billion.

The budget implies a deficit representing 10.95 per cent of gross domestic product, up from an estimated 8.64 per cent in the current financial year that ends this June, according to a budget statement.

 
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