Daily News Egypt

Reforms will help curb budget deficit: Mehleb - Daily News Egypt

Advertising Area

Advertising Area

Reforms will help curb budget deficit: Mehleb

Outgoing Prime Minister Ibrahim Mehleb said the government has presented a ‘bold’ budget for the coming fiscal year which will overhaul the energy subsidy system

Interim Prime Minister Ibrahim Mehleb
Interim Prime Minister Ibrahim Mehleb

An overhaul of the state’s budget will reallocate funds in favour of social programmes, accounting for 53% of the total. The move is aimed at reducing the expected budget deficit to EGP 288bn from EGP 350bn.

“It is inevitable that reducing energy subsidies and raising the costs of some petroleum derivatives will raise consumer prices,” said Mehleb, “but we are looking to tighten market controls and improve the quality of consumer cooperatives in order to provide citizens with their basic needs.”

The unemployment rate, currently 13.4%, is the biggest challenge facing the incoming president. The allocation of wages in the current budget, Mehleb explained, is EGP 208bn compared to EGP 83bn in 2009/2010.

Melheb added: “The government will be presenting its resignation once the new president assumes office. It has already developed a comprehensive development plan including all the governorates and an investment map with sites for national projects.”

Mehleb added that any comment on whether he will remain as Prime Minister in the new cabinet should be treated as speculation


Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter