Reuters – The Egyptian government sees its budget deficit, if it does not implement reforms, running at 14-14.5% of gross domestic product in the fiscal year starting on July 1, Finance Minister Hany Kadry Dimian said on Sunday, above a target of 10-10.5% he gave in March.
Egypt’s economy has suffered from more than three years of political turmoil that has driven away tourists and investment. Last month, Dimian cut the economic growth target for the fiscal year to the end of June to 2-2.5% from 3-3.5%.
“The budget deficit, if we do not implement reforms, will be around EGP 340-350bn ($48.60bn-$50.03bn), which is around 14 to 14.5% of GDP,” Dimian said in an interview with CBC, a local TV station.
Egypt’s fiscal year runs from 1 July to 30 June.
Dimian, appointed earlier this year, said in March the state’s budget deficit for fiscal year 2013/14 would be around 12% and expected it to stand at 10-10.5% in the following fiscal year.
Dimian said he hoped economic reforms could bring the budget deficit down to 10% of GDP, but gave no time frame.