Egypt’s Prime Minister Sherif Ismail talks during an interview with Reuters at his office in Cairo September 22, 2014. REUTERS/Amr Abdallah Dalsh
CAIRO – 28 March 2018: The new budget for fiscal year 2019/19 targets to increase spending on public wages to LE 266 billion, while spending on social welfare will reach LE 332 billion, Prime Minister Sherif Ismail said.
The budget will also see increased government investments of LE 149 billion, up from LE 70 billion in the current budget.
The new budget was sent to the Prime Minister Wednesday, before sending it to the Parliament on March 31.
Egypt’s Cabinet approved last week the new budget, which targets a deficit of 8.4 percent of GDP, compared to 12.5 percent in 2015/16.
The budget targets expenditures of LE 1.41 trillion, with a 15.5 percent increase, while it aims to increase revenues by 22 percent.
It also aims to curb foreign debt to 88 percent and achieve a primary budget surplus of two percent.
The government further seeks to lower unemployment rate to 10.4 percent and targets an inflation rate of 13 percent.
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.