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Egypt expects lower deficit, new budget approved

Staff writer ▼ | June 22, 2015
The Egypt’s government has approved the budget proposal for the 2015/2016 fiscal year that starts July 1 with a reduction of the deficit and expansion of spending with social programs.
Egypt street market
Economy   GDP estimated deficit in Egypt 10.8%
The budget proposal will be sent to the approval of the president, Abdel Fattah al-Sisi.

According to information released by Reuters, the new budget forecasts a budget deficit of 9.9% of the Gross Domestic Product (GDP). In the 2014/2015 fiscal year that will end on June 30, the estimated deficit stands at 10.8% of the GDP.

This budget proposal forecasts an increase of 12% in spending with social programs in a total of $56.5 billion. According to the proposal, this amounts to 49% of public spending for the next fiscal period.

Egypt also forecasts a 5% GDP growth, as well as keeping subsidies for food purchases.