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Tuesday, 12 July 2016

Finance ministry says deficit will be cut to 9.8% of GDP

The Finance Ministry is forecasting a budget deficit of 9.8% of GDP for FY2016-17, Reuters reported. The budget targets revenues of EGP 669.7 bn and expenditures of EGP 974.8 bn, according to a ministry statement. The newswire adds that the budget was approved by the House of Representatives on 28 June. To put the figure in perspective, the deficit recorded in just the first 10 months of FY2015-16 was 9.8% of GDP. Fitch Ratings already questioned the government’s target, saying it expects the deficit to reach around 11% of GDP, down from the 11.6% of GDP it expects the government to record in FY2015-16.

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