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FINANCIAL NEWS
Egypt’s 2012/2013 budget deficit to hit USD31.5b: Minister
03 Jan 2013
(MENAFN) Egyptian planning minister estimated the country’s budget deficit for the year through June 2013 to widen by 50 percent from the original forecast made in July 2012, official news agency MENA reported.
According to Ashraf Al Araby, the budget deficit is expected to hit USD31.5 billion in the current fiscal year.
The 2012/2013 budget deficit was originally estimated in July at USD21.12 billion compared to USD26.1 billion in the previous year, which economists at the time said that forecast was optimistic.
Earlier this month, President Mohamed Mursi postponed a series of planned tax increases, necessary to secure USD4.8 billion sought from the International Monetary Fund (IMF), as the country prepared for a referendum on a contentious new constitution, which was passed on December 22.
The government said last week it would not implement the measures for at least two more weeks to give it time to explain them to different parts of society.
Al-Araby predicted in November that this year’s deficit would be 10.4 percent of gross domestic product, without stating the figure in pounds, up from the original forecast of 8 percent.
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