FILE- President Abdel Fatah al-Sisi
CAIRO – 25 March 2018: The Cabinet will send the new budget for fiscal year 2018/19 to President Abdel Fatah al-Sisi this week for approval before referring it to the Parliament by the end of March, Finance Minister Amr el-Garhy said.
Egypt’s Cabinet approved last week the new budget. The new budget targets a budget deficit of 8.4 percent of GDP and investments worth LE 100 billion, up from LE 70 billion in the current budget.
It also targets expenditures of LE 1.41 trillion, GDP growth of 5.8 percent, 88 per cent public debt and achieving a primary budget surplus.
Taxes and tariff yields are projected to contribute LE 760 to the new budget’s revenues.
The upcoming budget seeks to lower the unemployment rate to 10.4 percent with an inflation rate of 13 percent.
Garhy said that the new budget will see increased spending on social protection. The new fiscal year, which will start on July 1, is expected to see a fresh round of subsidy cuts that will likely lead to price hikes.
The new budget is set to be the largest budget in Egypt’s history.