Egypt targets 5-5.5% growth, 9- 9.5% budget deficit in 2016/17: Ministry

Ahram Online , Monday 30 Nov 2015

Cairo's headquarters of the Egyptian ministry of finance (Photo Al-Ahram)

Egypt is targeting a budget deficit of around 9 to 9.5 percent and a growth rate of around 5 to 5.5 percent for the fiscal year beginning July 2016, the Ministry of Finance announced in a press release on Monday.

The statement also revealed that the government plans to reduce public debt to 88 to 90 percent of GDP and the unemployment rate to 10 percent.

The government also hopes to reduce the deficit by raising more revenues by merging the informal sector with the formal economy and implementing the value-add tax.

A system for allocating finances to ministry-specific programmes will be expanded to seven new ministries including health and education, according to the statement.

Egypt's budget deficit hit 11.5 percent in the fiscal year 2014/15 down from 12.2 percent in the same period the previous year, with growth estimated to reach 4.2 percent in the same period.



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