Egypt cabinet to cut its spending by 15-20 pct, diplomatic missions personnel in half

Ahram Online , Thursday 20 Oct 2016

The measure comes amid attempts to address Egypt's economic crisis, including an acute dollar shortage and surging inflation

Egypt Cabinet
Egypt's Cabinet during a ministerial meeting (Photo: Al-Ahram)

The Egyptian cabinet has decided to cut its spending and reduce Egypt's representation from various ministries in diplomatic missions abroad in a belt-tightening measure, the cabinet spokesman said in a statement.

The cabinet's economic commission said it will cut down spending by the country's 34 ministries by 15-20 percent, without decreasing payroll and investments, said the statement by spokesman Hossam Gawish, carried by the MENA state news agency.

The committee will also reduce the number of members of diplomatic missions abroad by half and would instead rely on foreign ministry staff, the statement added.

Egypt has been struggling to tackle an economic crisis caused in part by an acute foreign currency shortage, surging inflation and low levels of tourism and investment.

Egypt's budget deficit widened by 11.2 percent of gross domestic product in the first 11 months of the financial year, to stand at EGP311 billion ($35.02 billion), the finance ministry said.

The Egyptian authorities are adopting economic reforms to increase public revenues and reduce costly state subsidies, including a new value added tax.

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