Energy Subsidies Soar To Hit $24bn

Egypt’s energy subsidies are projected to rise to E£170bn ($23.7bn) in fiscal year 2013-14 ending on 30 June, Egyptian Prime Minister Ibrahim Mahlab says. This is E£70bn above the original budgeted figure of E£99.6bn and E£36bn higher than the revised E£134.3bn estimate given by Finance Minister Hani Dimian, when he unveiled some details of the 2014-15 budget last month (MEES, 30 May).

Soaring subsidies highlight the need to lower the budget deficit in 2014-15 which is projected to fall to 12% of GDP from 14% in 2013-14. The energy subsidies in the new 2014-15 budget are also projected to fall by 22% to E£104.5bn ($14.6bn) from 2013-14. (CONTINUED - 410 WORDS)