19 March 2014

Egypt: Finance Minister - New Budget Needs Additional Egp 130 Billion

Minister of Finance Hani Qadri said the budget of FY 2014-2015 will be completely restructured to provide L.E 130 billion, needed for meeting the commitments of the constitution, in terms of increasing expenditure on education, health, scientific research and wage raises.

However, the readjustment needs huge reform policies, envisaging cutting the electricity subsidy over two phases, ending within 7 - 10 years to reaching the global prices, he said. This, in addition to expanding the base of tax-payers to include all incomes and profits, the minister added, denying any tendency towards imposing taxes on Egyptian expats.

The enforcement of the third phase of the value-added tax will increase the rate of inflation by 1 per cent for once, Qadri said, affirming that taxes could not be increased in light of the slack growth of the national economy.

The 5% tax that he proposed to be imposed on the rich is meant for their income and not for their wealth, intensifying that such a tax is designed to encouraging businessmen to implement services or development projects for helping the citizens and the society.

The minister further underlined that there is no alternative for restructuring the budget to decreasing the deficit, otherwise it will surge to 14%, a matter which will have a negative repercussions on the economy.

Copyright © 2014 Egypt State Information Service. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.