Egypt's parliament will discuss the state budget of the next fiscal year 2017/2018 within the coming days, amid reports to be the hugest budget in the modern history of Egypt. Al Bawaba will shed light on the main features of the new budget bill. The 2017/2018 budget targets an increase of 27% in revenues, to reach EGP 819bn compared to EGP 644bn. Revenues from taxes are planned to reach EGP 604bn, while other revenues will amount to EGP 214bn. The government expects that the deficit for the coming fiscal year will increase by 6%, recording EGP 371. The deficit rate of the current year, ending June 30, is expected to reach 10.7% compared to 12.2% in the last fiscal year. A statement from the Finance Ministry stated that the government aims to rationalize its spending, reduce the deficit to 9.1% and stimulate investments of all types in various sectors. The new budget would assume an oil price of $55 per barrel, and an exchange rate of EGP 16 per dollar. The budget aims to increase tax revenues to 73%, totaling EGP 604bn compared to EGP 461bn in 2016/2017. The Ministry of Finance allocated EGP 381bn for the public debt, with an increase of 25% from last year, EGP 304bn. The education and health allocations included EGP 142bn for pre-university education, EGP 65bn for university education, EGP 31bn for scientific research and EGP 103bn for health sector. Egypt is struggling to revive its economy since 2011 following the uprisings that toppled former president Hosni Mubarak, leading to security unrest which drove away tourists and foreign investors - two major sources of foreign currency. On 3 November the Central Bank of Egypt (CBE) decided to liberate the local currency exchange rate in a move aimed to unlock foreign inflows and secure a $12bn loan over three-year term from the International Monetary Fund (IMF). The IMF loan would support the government's effort to reduce its budget deficit and balance Egypt's currency market. Parliament can either approve the budget bill or send it back to the government for amendment. If parliament approves the budget it will be signed into law by the president. According to the 2014 constitution, the country's new budget and development plan should go into effect on the first of July every year.
