Bloomberg News

Egypt Budget Deficit May Reach $25 Billion, Official Says

March 12, 2012

Egypt’s Ministry of Finance expects the budget deficit for the fiscal year that ends in June to widen to 150 billion Egyptian pounds ($25 billion), higher than previously forecast, the state-run Middle East News Agency said.

Planning and International Cooperation Minister Fayza Aboulnaga had announced a target of 144 billion Egyptian pounds, or 8.7 percent of expected economic output, in January. The previous target was 134 billion pounds. The revision stems from election expenses and increased payments to some state employees, MENA said, citing Abdel Aziz Mohamed, undersecretary at the ministry.

Egypt is seeking a $3.2 billion loan from the International Monetary Fund to help the economy recover after the uprising that ousted Hosni Mubarak in February last year, which kept investors and tourists away and drained foreign-exchange reserves. The government says it will invite an IMF mission to visit the country this month.

To contact the reporter on this story: Mariam Fam in Cairo at mfam1@bloomberg.net

To contact the editor responsible for this story: Louis Meixler at lmeixler@bloomberg.net


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