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Egypt this week released a provisional 2015-16 budget. Spending on oil subsidies is slated to continue falling to less than half 2013-14 levels, as the country capitalizes on lower oil prices to push forward with much-needed economic reform. With spending set to rise, the IMF cautions that it needs to widen its tax base.
Egypt’s freshly-released provisional budget for the 2015-16 financial year sees the share devoted to oil subsidies fall below 7% of total spending, down from 20% as recently as 2012-13.
The budget for the year beginning 1 July was recently approved by the cabinet but is yet to be signed off by President Sisi. It lays out plans to cut spending on oil product subsidies to E£61bn ($8bn at the latest exchange rate of $1= E£7.63), down 13% from the provisional 2014-15 figure of E£70bn, 39% from the original 2014-15 budget projection of E£100bn and a massive 45% below the actual 2013-14 figure of E£127.5bn (see table and graphs). (CONTINUED - 1656 WORDS)
DATA INSIDE THIS ARTICLE
|table||Egyptian Revenue And Spending (E£ Bn)|
|table||Egypt’S July 2014 Price Hikes For Gas & Oil Products|