Egypt could further tweak budget assumptions as covid-19 plays out -FinMin
BUDGET WATCH- FinMin could further tweak budget assumptions as covid-19 plays out: The Finance Ministry is reviewing forecasts used to calculate the draft FY2020-2021 budget to account for recent economic developments caused by the covid-19 pandemic and the dramatic fluctuations of global oil prices, the ministry said in a statement.
More uncertainty ahead: Finance Minister Mohamed Maait outlined earlier this month a worst case scenario that would see the budget deficit widen to 7.8% of GDP if the pandemic continues until the end of the year. The primary surplus and overall debt-to-GDP could similarly fall below target by the end of the next fiscal year in July 2021 if this scenario pans out. Crude prices have also fluctuated wildly: While the ministry originally saw oil averaging USD 66/bbl during the coming fiscal year, Brent prices fell to USD 17/bbl in April before surging back to USD 37 as of Friday.
The ministry also released last week the draft Citizen Budget, an abridged version that highlights social spending and key allocations that directly affect people’s lives. Tap / click here to read the full document (pdf).