Trade and Industry Minister Mounir Fakhry Abdel Nour said allocations for subsidized exports will not increase in the 2015-2016 budget, but will remain at its current rate of LE2.6 billion.
Speaking to Al-Masry Al-Youm, the minister said the economic committee's decision to increase the allocations to up to LE 5 billion is still being discussed. The budget that was sent to the president ahead of implementation stated the current subsidy of LE2.6 billion without an increase.
The Federation of Egyptian Industries and the Federation of Egyptian Chambers of Commerce earlier requested in a memorandum to Cabinet that there be an increase in the allocation of the subsidy, he said.
In an earlier statement, the Cabinet's economic committee approved an increase in the allocations of up to LE 5 billion, however, Abdel Nour indicated there was difficulty in reaching this rate saying, “It’s hard to do under the current budget deficit. We’re considering, along with Finance Ministry, an increase in the available capabilities through additional resources from other sectors that have a surplus.”
Exports saw a decline in the first five months of the current fiscal year of 20 percent, which was blamed on the decline in subsidies allocated for exports, as well as the government’s reluctance about resolving the export issues.
Debts in the exports fund reached approximately LE1.5 billion, which means 50 percent of the fund’s budget of the new fiscal year will go to pay for the arrears.
Edited translation from Al-Masry Al-Youm