Minister of Finance, Dr. Ahmed Galal, stated a bill of a supplemental appropriation to the FY2013-14 state budget amounting to LE 33.9bn, most of which funded by cash and in-kind grants Egypt has received from the sisterly UAE since July 1 to December 31 last year.

He said that the bill, coordinated with Ministry of Planning, would be submitted to the Cabinet for approval before referral to the presidency to be enacted. He pointed out the supplemental appropriation acting as the second package for stimulating economy consistent with the expansionary fiscal policy the current government has been pursuing to overcome the economic crisis Egypt suffered, restore high growth rates, meanwhile achieve the objective of fiscal discipline  and reduce the budget deficit of the current fiscal year to 10% of GDP.

About projects and sectors the supplemental appropriation is geared to, the Minister pointed out that investment will hold the biggest share valued at LE 21.7 bn, of which LE 19.7 bn to finance some development projects agreed upon with UAE according to the framework agreement signed between the two countries, whereas LE2 bn to develop the Suez Canal axis project as one of the main investment national projects in Egypt.  The other part estimated at LE12 bn will be channeled to spend on programs of social projects; i.e. funding the minimum wage application, improving cadre of school teachers and facing deficits in allocations of social security program as a result of increasing the value of security pension and of the beneficiary households . Further, one billion pound will be pumped into a number of economic entities to redress their financial structures, most notably the Federation of Radio and Television.

The minister concluded stressing the government’s keenness not to launch any programs of public spending not matched by real resources to avoid the negative impacts on the budget deficit, public debt and consequently on the movement of prices as well as inflation rates, which directly harm the conditions of fixed-income categories that are most favored.

(Source: Ministry of Finance)