Egypt Squeezes Spending In Bid To Tame Deficit

Egypt has cut the projected deficit in the final version of its 2015-16 budget. But the shortfall will still be almost 9% of GDP. Subsidies and public sector salaries have been trimmed; interest payments now account for almost 30% of spending.

Egypt’s President Sisi has ratified the country’s budget for the financial year beginning 1 July after requesting the Ministry of Finance to amend the draft to reduce the projected deficit to 8.9% of GDP, down from the 9.9% originally mooted (MEES, 26 June). The deficit was 10.8% of GDP for the 2014-15 financial year that ended on 30 June; for 2013-14 it was almost 13% (see graph). (CONTINUED - 1241 WORDS)

DATA INSIDE THIS ARTICLE

table Egyptian Revenue And Spending (E£ Bn)