Egypt’s general budget deficit has climbed to 8.3 percent of the gross domestic product in the fiscal year 2009/2010. The deficit is estimated at LE99 billion.
According to a report prepared by the Finance Ministry, general revenue has declined by 5 percent, and spending has increased by 4.5 percent.
Spending on subsidies, grants, and social services has dropped by 18.6 percent, and spending on supply commodities has dropped by 20 percent due to the decrease in international prices, the Finance Ministry has revealed.
Non-tax revenue has decreased by 93.1 percent–LE2.1 billion compared to LE31.1 billion in the previous year. External grants have dropped by 48.3 percent, and revenue from sales of goods and services by 2 percent.
Tax proceeds have increased by 6.2 percent, totaling LE173.4 billion. Proceeds from property taxes are three times that of the previous year.
Expenditures have increased to LE367.3 billion due to rising interest on public debts, the cumulative increase in local interest paid to non-government bodies, and the increase in public investments.
Meanwhile, Yomn el-Hamaqi, deputy head of the economic committee of the Shura Council, said the government has not properly addressed the repercussions of the global financial crisis. She added that greater attention should have been given to field work and to resolving the problems of small scale projects.
Translated from the Arabic Edition.
