Senior informed sources have revealed that the state budget for the fiscal year 2015/16 has yet to be finalized, as the budget deficit is not yet settled.
Egypt's government, along with the Cabinet, are seriously considering expanding private sector participation in carrying out infrastructure and planning projects to help reduce government expenditure, the sources told Al-Masry Al-Youm. That trend comes within the anticipated increase in the budget, in terms of allocations to education, health and social subsidy, as stated by the constitution.
The economic ministerial committee will resume its meeting this week on the budget, ahead of being reviewed by the Cabinet, which will then be submitted to President Abdel Fattah al-Sisi, the sources added.
The meetings held by the Cabinet over the past few days have not resulted in a final state budget. Finance Minister Hani Dimian will review more budget proposals during the committee's coming meetings.
Energy subsidies will be reduced to LE86 billion in the new budget, the sources said, referencing the international decrease in oil prices. They added that the budget was made on estimates that oil prices have reached US$70 per barrel.
Electricity subsidies will reach LE31 billion in the new budget, the sources said, although it was orginally set to be reduced by LE7 billion from the projected LE20 billion budget. This adjustment was made due to the fact that the US dollar has increased over the past few months, thereby adding LE11 billion to the original LE20 billion projection. This new budget is LE4 billion more than last year's LE27 billion budget.
In related news, Prime Minister Ibrahim Mehleb met with Sheikh Sultan bin Khalifa al-Nahyan, the Emirati presidential deputy, as well as the Emirati ambassador to Egypt. The attendees tackled several projects that were signed during the Sharm el-Sheikh economic summit in March.
Edited translation from Al-Masry Al-Youm
