Finance Minister Hany Qadry Dimian on Saturday requested the ministry submit the new 2014-2015 state budget to President Abdel Fattah al-Sisi without amendment instead of the tentative budget that was sent last month to Interim President Adly Mansour.
This came after Prime Minister Ibrahim Mehleb met with Dimian and Minister of Planning Ashraf al-Araby to discuss the budget.
The budget includes a raise in pensions for civilians and military personnel.
Public spending is LE807 billion, an increase of LE65 billion from the previous budget, revenues are LE517 billion, less than the previous budget due to grants and foreign aid totaling US$20 billion, and the deficit is LE288 billion or 12 percent of GDP, taking into account a decline in foreign grants and a spending on health, education, scientific research and a minimum wage, which would require rationalizing energy subsidies and applying tax reforms.
Reforming the petroleum products subsidies would save LE40 billion, while LE117 billion were allocated to social programs, an increase of 20 percent and another 33 percent in insurance funds and pensions and an 11 percent increase in consumer commodities ration cards. Also, LE9.5 billion were allocated for social housing projects and LE12 billion to accommodate three million households in the pensions program.
Edited translation from Al-Masry Al-Youm