The government aims to achieve a growth rate of between 4 and 4.5 percent during the 2012/2013 fiscal year, said Minister of Planning and International Cooperation Fayza Abouelnaga on Monday.
In a press statement, Abouelnaga said this was a “bold” goal under the current circumstances. She explained that the government aims to create greater investment opportunities and correct the problem of energy subsidies without compromising subsidies of basic goods.
Abouelnaga said that Prime Minister Kamal al-Ganzouri on Monday discussed the final draft of the budget for the 2012/2013 fiscal year, the first year of the first post-revolution five-year plan, and that it would be presented to the Cabinet on Wednesday.
She went on to say that the budget reflects social justice as there is a specific economic and social development plan.
Meanwhile, in a press statement, Finance Minister Momtaz al-Saeed said draft budget expenditures amounted to LE537.7 billion as compared to LE476 billion before the recent amendment to the current budget.
Revenues amounted to LE392.4 billion as compared to LE349.6 billion during the current fiscal year. The gap in the next budget amounts to LE145.3 billion.
State employees' wages rose to LE138.6 billion from LE117.5 billion in order to accommodate 25 percent of the state’s expenses that take into account periodic raises and incentives.
Saeed went on to say that the draft subsidies were cut to LE112.5 billion from LE132.9 billion, and that LE26.6 billion had been allocated for subsidized goods, including the LE16.6 billion for wheat and corn procurement.
He added that subsidized petroleum products were estimated at LE70 billion, down from LE95.5 billion in the current budget.
He explained that the reduction will be achieved by rationing subsidies without affecting gas subsidies for low-income citizens.
Edited translation from Al-Masry Al-Youm
