Egypt approves growth plan, deficit-cutting budget
CAIRO, April 1, 2016
Egypt's President Abdel Fattah Al-Sisi has approved the 2016-2017 draft budget, as well as an economic development plan, and sent both to parliament for passage, state news agency Mena said.
The draft budget reduces the deficit for 2016-17 to 9.8 per cent of gross domestic product from the current 11.5 per cent, and the development plan targets a growth rate of 5.2 per cent versus 4.4 per cent now, Mena said.
Egypt's government had on Wednesday approved a draft with a deficit of 9.9 per cent and economic growth of five to six per cent and passed it to the president for amendments.
Egypt, which relies heavily on imports, has been battling a shortage of dollars since an uprising in 2011 that drove away tourists and foreign investors, two big sources of hard currency.
The central bank devalued the pound this month, which economists said would encourage foreign investment but risks driving up inflation and hurting the poor.
The draft budget aims to reduce unemployment to below 12 per cent from its current level of roughly 12.8 per cent, Mena said. - Reuters
