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Monday, 19 March 2018

Ismail cabinet approves state budget for FY2018-19

The Ismail cabinet approved the state budget for FY2018-19, which targets GDP growth of 5.8%, up from 5.2% in the current fiscal year. The budget also targets a deficit of 8.4% of GDP, according to a statement from the cabinet. The goal is to bring Egypt’s finances to a primary budget surplus of 2% by FY2020-21, read a separate statement. The government aims to bring unemployment down to 10.4% and has an inflation target for the year of 13% — in line with those of the central bank.

The budget will see increased spending on social welfare and the ministers promised that spending on health and education would meet constitutional requirements. Neither statement mentions the extent of the energy subsidy cuts we should be seeing in FY2018-19.

More detail coming on 31 March: We expect a detailed breakdown of the budget to come when the Finance Ministry presents this to the House of Representatives, which minister El Garhy had said would happen on 31 March.

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