Officials from the Finance Ministry held meetings over the past two days to examine ways of financing the state budget for the new fiscal year.
The ministry earlier amended the budget after the ruling Supreme Council of Armed Forces rejected asking for loans from the World Bank and International Monetary Fund (IMF).
Sources close to the Finance Ministry said the budget continues to arouse controversy despite amendments to reduce public spending and hence the budget deficit.
The same sources, which spoke on condition of anonymity, said the government hopes it will be able to finance the budget through Arab assistance and grants, particularly from Gulf countries.
Meanwhile, Amir Rizq, a former finance ministry official, said the gap between revenues and expenditure has widened in the new budget. He also said investments were reduced and salaries increased haphazardly.
Rizq told Al-Masry Al-Youm that scrapping plans for an IMF loan was necessary due to the conditions attached to the loan.
Gamal Bayoumy, the secretary general for the Arab Investors Union, said the Minister of Planning and International Cooperation Fayza Abul Naga held condensed meetings with officials in her ministry to discuss ways Arabs could assist the Egyptian economy.
Bayoumy added that attracting Arab investments represented a safe alternative after canceled plans to borrow from the IMF and World Bank.
Translated from the Arabic Edition
