Egypt's Fin Min Sees 2012/2013 Budget Deficit Widen To EGP155B -Report

Monday, May 14, 2012

CAIRO (Zawya Dow Jones)--Egypt's finance ministry expects the budgetary cash deficit for the fiscal year that ends June 2013, to widen to 161 billion Egyptian pounds ($26.7 billion), as millions of dollars is spent on boosting the minimum wage and introducing welfare benefits, daily Egyptian newspaper Al Ahram reports Monday, citing the prime minister Kamal Al Ganzouri.

The draft budget, which is being reviewed by a ministerial committee before being sent to parliament for approval, targets total revenues of EGP377 billion, while total expenditure is expected to reach EGP538 billion, Al Ahram reports.

The country's current deficit for the fiscal year that ends June 2012, is expected to reach EGP144 billion, or equivalent to about 8.7% of gross domestic product.

Energy subsidy expenditure will be cut by EGP15 billion in the new 2012/2013 budget, the report said.

Newspaper website: http://www.ahram.org.eg/Economy/News/149131.aspx

-By Farah Halime; Contributing to Dow Jones Newswires; +20111 4994453

Fhalime@gmail.com

(END) Dow Jones Newswires

14-05-12 0741GMT