Minister of Finance announces the new year’s budget
Finance Minister Hani Kadry - YOUM7 (Archive)
By THE CAIRO POST

CAIRO: Minister of Finance Hani Qadry announced during a press conference Monday while presenting the budget of the new fiscal year, that indicators show high inflation rates ranging between 10 to 11 percent.

Economic growth rates declined to 2%, which led to a rise in unemployment to a record between 13 percent and 14 percent, with a record 25 percent among young people ages 16 to 25 years-old, reported Youm7.

The minister added that the total budget deficit rose to 13.7 percent last year 2012/2013, and it is expected to reach 12% during the 2013/2014 financial year.

He added that the ministry will take hard measures to control total debt by reducing the deficit over the next three years. They will aim to reduce the debt rate from 93.7 percent of the Gross Domestic Product (GDP) for the current financial year 2013/2014 to reach rates between 80 and 85 percent by the year 2016/2017, Qadry said.

He also added that the government will implement several policies during the next period to achieve an economic take-off and increase allocations to the social dimension in order to restore financial stability in the country and  control the budget deficit.

On the other hand, he said during the conference that professional tax reached 900 million EGP ($128.85 million) so far for the first  time in Egypt’s history, compared to 333 million EGP ($46.56 million) last year,” adding that the target is to reach 7 billion EGP ($978.8 million), according to Al-Masry Al-youm.

He added that tax evasion is at least 30% of the tax revenue after excluding the proceeds of the ruling institutions.

Petroleum subsidies for the 2014/2015 fiscal year are 100.3 billion EGP ($14 billion) and the government aims to cut petroleum subsidies over the next three to five years, said the minister, according to Reuters.

Qadry said that the most important of these policies is the redistribution of the available resources in favor of the poor and low-income citizens, through re-prioritization of public spending.

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