Egypt's Minister of Finance Youssef Boutros Ghali has recently said that the budget deficit was "not a source of concern to the government." He added that it was indicative of a healthy economy as long as the Egyptian economy post a 5 percent rate of growth.
However, he added the government will soon adopt some decisions to address this deficit.
Recent press reports indicated the budget deficit amounts to some LE52 billion or nine percent of GDP. A significant share of the budget goes towards paying subsidies, some LE12 billion in 2003-2004. The wages of public servants, according to a study by the Economic Research Forum, amounted to around LE22 million in 1999-2000.
Ghali who made these remarks in a meeting Thursday with members of Alexandria Chamber of Commerce with Governor Abdul Salam Al Mahgoub attending, vowed that the new customs and taxes draft law will also be finished soon. It aims at scoring flexible treatment with investors, tax payers and merchants. (menareport.com)
© 2004 Mena Report (www.menareport.com)
