Egypt is allocating 127.7 billion Egyptian pounds ($4.14 billion) from the budget for its expanding food subsidy program, Reuters reported on June 13.
The spending side of the budget will be £3bn for the fiscal year beginning July 1.
Egypt, a country of 105 million people, is one of the world’s largest wheat importers and is also dependent on imports of other staple foods and fuel.
The Finance Ministry estimates that Egypt will need 8.25 million tons of wheat in the next fiscal year, and the budget includes an oil price of $80 per barrel of Brent oil, according to a financial report attached to the draft budget approved by the Parlament.
According to the document, Egypt’s budget contemplates revenue of 2.142 billion pounds and forecasts a total deficit of 824.440 million pounds, or 6.96% of gross domestic product (GDP).
The budget, which parliament approved on June 12, estimates real GDP growth of 4.1% and average inflation of 16%.
It is also assumed that the average interest rate on public debt instruments will reach 18.5%.
Source: Rossa Primavera
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