US employment cost index 3.6% up in year to June 2025    Egypt's Suez Canal marks $153b in revenues since nationalisation    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt's deficit likely below forecast-minister
Published in Daily News Egypt on 01 - 07 - 2010

CAIRO: Egypt's budget deficit for the financial year that ends on June 30 is likely to come in below the target of 8.4 percent of gross domestic product (GDP), Egyptian Finance Minister Youssef Boutros-Ghali told Reuters.

The state would also spend less on subsidies, which now account for more than a quarter of total spending, in 2010/11 so it can spend more on education, health and other social services without increasing the deficit, he said in an interview.
Egypt had forecast a deficit of LE 98.9 billion ($17.4 billion) in 2009/10 on spending of LE 323.9 billion.
Asked about the deficit, Boutros-Ghali said: "It will be somewhere between 8 and 8.2 (percent) — or, at worst, 8.4."
"In the face of what is happening in the rest of the world, I count this as a major achievement," he said late on Monday, ahead of the new financial year which starts on July 1.
He based his new estimate on monthly revenue figures that had come in better than expected, but said he was still awaiting expenditure figures before giving a final deficit number.
"I have been very strict in expenditure control. I stuck to what was in the budget fanatically, and the economy turned out better than I had anticipated," Boutros-Ghali said.
"In the third and in the fourth quarters (of Egypt's financial year), tax receipts were better, Suez Canal receipts were better, sales tax receipts were better. Income tax receipts were not as bad as we expected them to be," he said.
The government financed the deficit mainly through domestic sources such as Egyptian pound Treasury bills and bonds. In April, it sold dollar-denominated bonds worth $1.5 billion.
Egypt's domestic debt was LE 86.3 billion and foreign debt was $32.3 billion, central bank figures for March showed.
"Our debt-to-GDP ratio has moved by two points, from 80 percent (in 2008/09) to 82 at the end of this year. Next year, it is scheduled to come down to anywhere between 74 and 77 percent of GDP," Boutros-Ghali said.
Total debt has dropped from the equivalent of 125 percent of GDP in 2004, the year Prime Minister Ahmed Nazif and his cabinet of economic reformers took office.
In 2010/11, the government will spend a forecast LE 101 billion on subsidies, more than a quarter of its total forecast spending of LE 394.5 billion, Boutros-Ghali said.
"We need to bring them down. Over the next two, three years, we are going to be bringing them down significantly," he said.
Tackling subsidies
For 2009/10, the government had forecast subsidy spending at LE 59.8 billion. The increase for 2010/11 is due to higher oil prices, changes in budget assumptions for oil prices and increased consumption of subsidized products in Egypt, he said.
"Consumption is growing very significantly," Boutros-Ghali said, adding that energy subsidies alone were equal to education and health combined. The main subsidized goods and services are energy, housing, exports, transport subsidies and food.
"One of the reasons we want to tackle subsidies is not only because they are not good for the budget, but because we need to limit consumption. And we will do that by raising prices and lowering subsidies."
The government has introduced an electronic ration card for a basket of household goods it sells at reduced prices. The system, which limits subsidies to the very poor, has now been implemented almost throughout the country, Boutros-Ghali said.
"Because my budget deficit is taken into account, it's coming down by its own. I don't need the subsidy reduction to bring the deficit down," he said.
"But if I'm going to improve the standards of services and healthcare and education, I'm going to have to bring the subsidies down."
Egypt plans to introduce a coupon system for butane cooking gas after mid-September, when the fasting month of Ramadan ends.
"I have the coupons, they've been printed, they're ready to go. It will be implemented after Ramadan."


Clic here to read the story from its source.