{"id":652645,"date":"2017-01-16T04:03:09","date_gmt":"2017-01-16T04:03:09","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/16\/budget-deficit-records-5-1-of-gdp-in-1h2016-17\/"},"modified":"2017-01-16T04:03:09","modified_gmt":"2017-01-16T04:03:09","slug":"budget-deficit-records-5-1-of-gdp-in-1h2016-17","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/16\/budget-deficit-records-5-1-of-gdp-in-1h2016-17\/","title":{"rendered":"Budget deficit records 5.1% of GDP in 1H2016-17"},"content":{"rendered":"<p><strong>Egypt\u2019s budget deficit shrank to 5.1% of GDP in the first half of FY2016-17<\/strong>, registering EGP 174 bn,down from 6.1% of GDP a year earlier, Finance Ministry Amr El Garhy announced at a press conference yesterday, according to a report by <a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1072638\">Al Masry Al Youm<\/a>. Revenues grew to 14.5% of GDP, coming in at EGP 220 bn from EGP 192 bn last year. The government also plans to <strong>phase out fuel subsidies over the coming five years<\/strong> and is expected to have clear figures for energy and fuel subsidies as part of the IMF agreement, he added, <a href=\"http:\/\/www.almalnews.com\/Pages\/StoryDetails.aspx?ID=318666\">Al Mal<\/a> reports. On the revenue side, <strong>El Garhy <\/strong><a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1072666\"><strong>expects<\/strong><\/a><strong> the executive regulations of the value-added tax (VAT) law to be ready within two weeks<\/strong>, saying tax revenues were affected by the transition from a general sales tax to VAT as taxpayers were given an extra three months to submit their returns.<\/p>\n<p><strong>\u2026El Garhy also announced that Egypt overshot the IMF\u2019s target for the primary deficit, which was 20% lower<\/strong>, according to <a href=\"http:\/\/www.almalnews.com\/Pages\/StoryDetails.aspx?ID=318665\">Al Mal<\/a>. Overall, the government is targeting a budget deficit of 10.1% of GDP in FY2016-17, down from the 11.5% of GDP recorded at the end of last fiscal year, <a href=\"http:\/\/www.shorouknews.com\/news\/view.aspx?cdate=15012017&id=fa8df7e8-7f51-4821-8bcc-2816e2898b8c\">Al Shorouk<\/a> says.<\/p>\n<p><strong>Sneak peek at IMF agreement: <\/strong>The minister lifted the veil on a corner of the IMF financing agreement, which will apparently see the state\u2019s payroll outlay fall to 6.8% of GDP from last year\u2019s 7.8% and tax revenue rising to 13.8% of GDP from 12.6% last year, <a href=\"http:\/\/www.alborsanews.com\/2017\/01\/15\/%D9%88%D8%B2%D9%8A%D8%B1-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D9%8A%D8%B9%D9%84%D9%86-%D8%AA%D9%81%D8%A7%D8%B5%D9%8A%D9%84-%D8%A7%D9%84%D8%A8%D8%B1%D9%86%D8%A7%D9%85%D8%AC-%D8%A7%D9%84%D9%85\/\">Al Borsa<\/a> reported. The IMF loan carries a 1.5-1.75% interest rate; each of the three tranches carries a separate 10-year repayment period with a 4.5-year grace period, said El Garhy. The agreement also includes commitments to restructuring fuel and energy subsidies within 3-5 years while simultaneously expanding social protection programs and low income housing, he said \u2014 both previously well-known provisions.<\/p>\n<p>However much the learned folks in the House may prefer otherwise, <strong>Amr El Garhy didn\u2019t say yesterday he is raising taxes. <\/strong>An <a href=\"https:\/\/www.yahoo.com\/news\/egypt-cut-subsidies-boost-revenues-under-reform-package-144907824.html\">AFP story<\/a> created some confusion on El Face and Tweeter yesterday with a piece on the presser that opened with the lede \u201c<strong>Egypt will make further \u2018significant\u2019 cuts to energy subsidies, raise taxes<\/strong> and seek more international financing\u2026\u201d The taxes bit also made it into online headlines. The problem: As the story makes clear, El Garhy was making reference to the 1 ppt hike in the value-added tax to 14% in July from the introductory rate of 13%. Not a new tax, folks: That\u2019s exactly how the law was written.<\/p>\n<p>Separately, El Garhy also announced <strong>the Finance Ministry will be fixing the customs USD exchange rate throughout February<\/strong> rather than letting the rate move freely each day. He said the rate will be set each month using the reference rate set in previous months, according to <a href=\"http:\/\/www.alborsanews.com\/2017\/01\/15\/%D8%B9%D8%A7%D8%AC%D9%84-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D8%AA%D8%B9%D9%84%D9%86-%D8%AA%D8%AB%D8%A8%D9%8A%D8%AA-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D8%A7%D9%84%D8%AC%D9%85%D8%B1\/\">Al Borsa<\/a>. Federation of Egyptian Industries chief Mohamed El Sewedy commended the decision, saying that it will help stabilize commodity prices in the local market, <a href=\"http:\/\/www.alborsanews.com\/2017\/01\/15\/\u0627\u0644\u0635\u0646\u0627\u0639\u0627\u062a-\u062a\u062b\u0628\u064a\u062a-\u0627\u0644\u062f\u0648\u0644\u0627\u0631-\u0627\u0644\u062c\u0645\u0631\u0643\u0649-\u064a\u0633\u0627\u0639\/\">Al Borsa<\/a> reported.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt\u2019s budget deficit shrank to 5.1% of GDP in the first half of FY2016-17, registering EGP 174 bn,down from 6.1% of GDP a year earlier, Finance Ministry Amr El Garhy announced at a press conference yesterday, according to a report by Al Masry Al Youm. Revenues grew to 14.5% of GDP, coming in at EGP [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-652645","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"fca23708-0fba-405d-9535-428ed28d03fc","order":"0","is_powered_by":true,"section_story_id":"4329a630-ceb1-46cf-8741-1851b8145140","story_type":"1","photo_url":"","photo_position":"above","related_issue":[652636],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Budget deficit records 5.1% of GDP in 1H2016-17 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/16\/budget-deficit-records-5-1-of-gdp-in-1h2016-17\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Budget deficit records 5.1% of GDP in 1H2016-17\" \/>\n<meta property=\"og:description\" content=\"Egypt\u2019s budget deficit shrank to 5.1% of GDP in the first half of FY2016-17, registering EGP 174 bn,down from 6.1% of GDP a year earlier, Finance Ministry Amr El Garhy announced at a press conference yesterday, according to a report by Al Masry Al Youm. 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GDP growth in the first half of the 2018-19 fiscal year reached 5.4%, she added. The government anticipates a GDP growth rate of\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/58.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":634294,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/01\/11\/budget-deficit-continues-to-narrow-in-1h2017-18\/","url_meta":{"origin":652645,"position":2},"title":"Budget deficit continues to narrow in 1H2017-18","author":"enterpriseam admin","date":"11 January 2018","format":false,"excerpt":"Budget deficit continued to narrow in 1H2017-18: Egypt\u2019s budget deficit declined to 4.4% of GDP in 1H2017-18, down from 5% during the same period last year, Finance Minister Amr El Garhy said at a meeting with President Abdel Fattah El Sisi. The primary budget deficit also fell to 0.3% of\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":598693,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/02\/egypts-budget-deficit-hits-5-3-of-gdp-in-9m2018-2019\/","url_meta":{"origin":652645,"position":3},"title":"Egypt\u2019s budget deficit hits 5.3% of GDP in 9M2018-2019","author":"enterpriseam admin","date":"2 June 2019","format":false,"excerpt":"Egypt\u2019s budget deficit fell to 5.3% of GDP in 9M2018-2019, compared to 6.2% in the same period the previous year, the Finance Ministry said in its April monthly bulletin (pdf). The primary surplus came at 0.7% of GDP during the first nine months of the fiscal year. The numbers came\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":650538,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/27\/government-to-increase-spending-on-social-security-and-welfare-programs-in-upcoming-fiscal-year\/","url_meta":{"origin":652645,"position":4},"title":"Government to increase spending on social security and welfare programs in upcoming fiscal year","author":"enterpriseam admin","date":"27 March 2017","format":false,"excerpt":"The government will increase spending on social security and welfare in FY2017-18 bysetting aside a sum equivalent to 1% of the nation\u2019s projected EGP 4 tn in GDP, said Finance Minister Amr El Garhy. This should come to around EGP 40 bn, he told President Abdel Fattah El Sisi and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":650356,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/22\/el-garhy-discusses-budget-in-an-al-ahram-interview\/","url_meta":{"origin":652645,"position":5},"title":"El Garhy discusses budget in an Al Ahram interview","author":"enterpriseam admin","date":"22 March 2017","format":false,"excerpt":"As for the FY2017-18 budget, Egypt\u2019s total subsidy expenditures are estimated to come in at EGP 385 bn, up from EGP 285 bn in the current fiscal year, El Garhy told Al Ahram in an interview published on Tuesday. Social welfare programs, including Takaful and Karama, will cost the state\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/652645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=652645"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/652645\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/652636"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=652645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=652645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=652645"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=652645"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=652645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}