Egypt’s capital expenditure budget set at LE509 billion

Egypt's capital expenditure budget for the fiscal year 2011/2012 has been set at LE509.3, exceeding the budget for 2010/2011 by LE28 billion, according to Minister of Finance Samir Radwan.

In addition, government support has been set at LE177.5 billion, exceeding the 2010/2011 budget of LE126.6 billion, said the minister.

After a ministerial meeting held to discuss the general features of the new budget on Wednesday, Radwan said in a press conference that the budget deficit this year would be between 9.1 percent and 10 percent.

He added that expenditure on the health, education and social services sectors would increase in addition to resolving the wages crisis by setting the maximum and minimum wages.

The ministry will not resort to international funding institutions like the World Bank and the International Monetary Fund, except in very specific and narrowly defined circumstances, Radwan stressed.

In related news, Minister of Planning and International Cooperation Fayza Aboul Naga said on Wednesday that the Egyptian government has for the first time borrowed from its foreign reserve, bringing it down from US$36 billion to US$30 billion.

She added that the Egyptian economy is in a critical condition and needs revitalization.

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