CAIRO: Minister of Finance Hani Kadry said this week the aid that Egypt has received from Gulf countries is expected to help reduce the budget deficit, according to a statement on the ministry website.
Kadry said the deficit is expected to drop from 14 percent to 11 or 11.5 percent, during a speech at a conference held at the American Chamber of Commerce on Tuesday.
After the events of June 30, Saudi Arabia, the United Arab Emirates and Kuwait pledged $12 billion in emergency aid to help Egypt overcome a critical period following the toppling of former President Mohammed Morsi.
The government’s economic reform efforts include amending the subsidy system, imposing an exceptional tax, increasing tax receipts and attracting new investments.
“Imposing an exceptional five percent tax on the wealthy is considered a quantum leap, especially for achieving social equity and boosting the Egyptian economy,” Kadry said.
The government understands the current critical situation and has in place the required solutions to confront them, Kadry said. He said that some of the reforms will take more time than others for results, and everyone except the poor should carry the burden of the reformation process.
The minister said more than one time in his speech that the ministry will not allow the budget deficit to reach 14 percent in the coming fiscal year.
He added that it may reach 14 percent if no measures are taken.