$ 9.9 billion, the deficit of the Egyptian budget
Egypt, Economics, 4/30/2005

The Egyptian government expected the stability of the deficit in the fiscal year which starts on July 1st, despite the reduction of customs fees and a plan to reduce taxes.

According to official estimates, spending in the new budget project which was approved by the cabinet reached 187.82 billion ( Egyptian pounds ) ( USD 32.4 billion).

Revenues were estimated at 130.15 billion Egyptian pounds (USD 22.43) billion. A matter which shows a deficit reached 57.67 billion Egyptian pounds ( USD 9.9 billion.) The spokesman for the Egyptian cabinet Majdi Radi said after a meeting for the government said that the deficiency is equal to 9.2% of the GNP, against 10.3% in the current fiscal year.

One official said that the deficit in the project does not include items like the surplus of social insurance and donations, which according to economists reduce the actual discrepancy which the government supplies by loans.

Economists see that the Egyptian government is in need of treating spending problems including the need of reducing the great support for commodity price which is a sensitive issue in Egypt with the aim to increase government's debts.

The Egyptian government had reduced the customs fees while the People's Assembly discusses the draft law to reduce taxes in seeking to reactivate the economy, attract investments and increasing growth rate.

Ministers explained that the government seeks to achieve a growth estimated at 6% in average during the next five years with the possibility that the growth will reach 7% during 3 or four years in comparison with 4.8% at the meantime.

Economists estimates consider that local debt is 90% of the GNP. Local banks have a great part of it while foreign debts is 38% of this GNP.

Previous Stories:
  Cabinet approves L.E. 187 billion state budget   (4/29/2005)
  Egypt to be major gas exporter by 2006   (4/28/2005)
  Mohammed Shiwi: Cotton export contracts 2.610 million kantars, earn $ 243 million   (4/27/2005)

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