The government is commit­ted to protect low-income citizens, raise public sector wages and create more job opportunities, Minister of Finance, Dr. Youssef Boutros Ghali said.

The Minister said that the new budget aims to increase growth rate which is expected to reach 3%-4% in 2009-2010.

Ghali pointed out that growth rates of emerging markets and develop­ing countries are expected to reach an average of 1.6%, while negative growth rates in devel­oped countries will hit 3.8%. The Minister said the new bud­get will focus on increasing edu­cation and health funds.

Despite public revenues decline due to the global financial crisis, number of population benefiting from food subsidies and pensions will be increased.

Ghali said that spending will reach,319 billion pounds as the volume of wages in the new bud­get will increase by 12% to reach 86.1 billion pounds.

Under the 2009-2010 state budget, the government allo­cated a total of 33.4 billion pounds for investments, partic­ularly in the infrastructure do­main, at about 5 billion pounds rise, Ghali said.

Spending on services and commodities purchasing will increase by 10% to reach 27 billion pounds. The funds earmarked for subsidies, grants and social allowances stand at 73.4 billion pounds in the new budget. On the other hand, Ghali said that the public deficit during the new budget of the fis­cal year 2009-2010 is expected to reach 8.0% of the Gross Domes­tic Product (GDP) compared to 6.9% during 2008-2009.

He pointed out the deficit will maintain until the recovery form the impact of the global finan­cial crisis, however it will not af­fect the financial stability plans on the medium term. Ghali add­ed that due to the financial crisis impact on economic activities, the volume of revenues is also expected to decline by 22% to reach 225 billion pounds, a 64.7 billion pound drop compared to the current fiscal year.

Tax revenues are also expect­ed to fall 21.5 billion pounds, 12.9%, while non-tax revenues will decline 43 billion pounds 35% due to declines in Suez Ca­nal and petroleum revenues. The new budget draft will not include additional taxes or fees.

(Source: El-Alam El-Youm)