Specific programs to vitalise the Egyptian economy to be discussed by the Ministerial Committee of Economic Performance Follow-Up next week

General budget deficit rises to 8.25%, but subsidies stay the same

Studying a restructure of wage levels nationwide

France lifts ban on tourists’ travel to Egypt as soon as peace and normalcy are restored 

A meeting of the Ministerial Committee of Economic Performance Follow-Up will be held next week to discuss specific programs set to vitalise the local economy and to absorb the repercussions of the recent events.

In a meeting held yesterday with a number of national, partisan and independent newspapers’ editors of chief, Egyptian Finance Minister, Dr. Samir Radwan, declared that the number of job applications received by the Ministry, handed in or through the assigned P.O. Box in the past few days, amounted to around 395, 000 applications. These will be channelled to the government and the private sector for processing.

The Minister further reviewed the main points emphasised by the government in its efforts to fend off the negative impact of the current events, and the measures adopted to maintain a functioning local economy. The necessary resources for the ministry of Trade & Industry have been promptly provided to secure the availability of the staple goods to the citizens. In addition, the resources of the ministry of Social Security have been reinforced to allow for the inclusion of 150 thousand new families under the umbrella of social security.

The current events, the Minister added, have contributed to a total change of the conditions and prevailing culture in Egypt, which requires the coordinated efforts of all in order to rebuild Egypt. There are real problems and suffering felt by the citizens, but the government is doing its best to remedy the situation.

Dr. Radwan asserted that the government is keen to continue the system of subsidies vigorously, which makes the government bear the burden of the rising international prices of essential commodities in the interest of the low-income brackets of the society.

The whole wage structure will be reviewed with the purpose of achieving better efficiency and greater social equality, according to the Finance Minister.

Addressing the editors in chief, Dr. Radwan emphasised the importance of the role played by the Egyptian media in covering and explaining the new developments and  the importance of restoring normalcy and peace to the Egyptian street to give the government a chance to curb the economic losses and to revitalise the economy again.

The Finance Minister reviewed the government’s strategy and the emergency measures adopted to deal with the post-crisis situation: a compensation fund of LE 5 billion was set up; tax income is paid on three instalments, the first with the tax return forms, the other two to be paid later in the year; no fines are imposed on late payment of insurance premiums, or on late payment of the sales taxes of January and February of the current year.

As for the expected rate of growth, the government estimates a possible growth rate ranging between 3.5% and 4.5%, while the IMF expected rate was 6% before the recent events. Furthermore, the general budget deficit is expected to rise from 7.9% to 8.25%. However, the government is keen to prevent any sharp rise in deficit rate, according to Dr. Radwan.

In the last few days, the Egyptian finance minister met with the ambassadors of Britain, France, and the USA who showed their respective countries' keen interest in providing Egypt with all the economic assistance required to face the current crisis. He stated that the French ambassador said the ban on tourists’ travel to Egypt would be lifted as soon as normalcy and peace were restored in Egypt.

(Source: Ministry of Finance)