INITIAL figures of Egypt's 2012/13 budget are out. The budget is set to reach LE537.7 billion, a 20 per cent increase on last year. A deficit of LE140 billion, equalling 7.9 per cent of GDP is expected. The budget is being reviewed by a ministerial committee before its presentation to parliament for approval. This year's budget is seeing a restructuring of subsidies for the first time in 30 years. Subsidies on food products are set to increase by LE6 billion to reach LE25 billion. But subsidies on fuel will be cut by LE25 billion down to LE70 billion. The LE25 billion in savings are expected to come as a result of the distribution of butane gas cylinders through coupons, higher gas prices for energy intensive industries and a decrease in gasoline subsidies. These cuts are aimed at rationalisation and better targeting of subsidies. Savings from subsidies, the government said, will be directed towards spending on health and education. Wages and salaries will take up 25 per cent of the budget at around LE139 billion. No figures have yet been released on the size of investments expected.
