São Paulo –The Egypt’s government has approved the budget proposal for the 2015/2016 fiscal year that starts in July 1st with a reduction of the deficit and expansion of spending with social programs. The budget proposal will be sent to the approval of the president, Abdel Fattah al-Sisi.
According to information released by the news agency Reuters this Friday (19th), the new budget forecasts a budget deficit of 9.9% of the Gross Domestic Product (GDP). In the 2014/2015 fiscal year that will end on June 30th, the estimated deficit stands at 10.8% of the GDP.
This budget proposal forecasts an increase of 12% in spending with social programs in a total of US$ 56.5 billion. According to the proposal, this amounts to 49% of public spending for the next fiscal period. Egypt also forecasts a 5% GDP growth, as well as keeping subsidies for food purchases.
*Translated by Sérgio Kakitani
