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Sunday, 8 December 2019

FinMin aims to cut government spending by 6.5% next fiscal year

BUDGET WATCH- FinMin aims to cut government spending by 6.5% next fiscal year: The Finance Ministry is projecting a 6.5% y-o-y reduction in government spending in the FY2020-2021 budget, according to a ministry statement. The ministry was mute on where the cuts to spending could come, and the expected trimming of subsidy spending next year is unlikely to account for the full 6.5% reduction.

What we already know about how the budget is shaping up: The ministry had indicated it is eyeing 6.4% GDP growth in FY2020-2021, up from a targeted 6% for the current fiscal year. The ministry is also planning to narrow the overall budget deficit to 6.2%, from an expected 7.2% in FY2019-2020. The budget will also look to lower Egypt’s debt-to-GDP ratio to 80%. The ministry is set to release its preliminary budget for the upcoming fiscal year in 3Q2019-2020.

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