Back to the complete issue
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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2020 Enterprise Ventures LLC.