Despite austerity measures, the cuts in the 2012-2013 budget won’t compromise the expenditures for low income citizens, but would cut subsidies for energy intensive factories, the minister of finance ...

Despite austerity measures, the cuts in the 2012-2013 budget won’t compromise the expenditures for low income citizens, but would cut subsidies for energy intensive factories, the minister of finance said Sunday. “The ministry has taken measures to provide necessary liquidity from the reserves of the budget, however these reserves do not exceed 1 percent,” minister Mumtaz Al-Saeed said, according to a report by state official news portal. Starting Sunday the state would implement a decision to cut down energy subsidies and increase prices for energy-intensive factories such as those which produce ceramics, steel, cement, or fertilizers, he added. “Gas and electricity prices for energy-intensive factories will be increased by $1, which is 33 percent of the current price,” said Al-Saeed. Magda Kandil, executive director of the Egyptian Center for Economic Studies, previously told Daily News Egypt that such a move would not only help alleviate Egypt’s depleting resources, but at the same time it would force energy-intensive factories to think twice about their gas and electricity consumption. She explained that the main goal would also be to curb government spending as the budget deficit continues to widen. This move is among many steps that the government needs to take to cut spending. Cutting food subsidies or other expenses directed towards achieving social justice is out of the question at the moment. Kandil said the government is taking cautionary measures in light of recent protests and strikes, where frustrated, dissatisfied citizens continued to call for social justice.     http://www.thedailynewsegypt.com/economy/budget-cuts-to-target-subsidies-to-energy-intensive-industries-says-minister.html