Failure to implement reforms may widen Egypt’s deficit next fiscal year

April 29, 2014 12:04 am

Egypt’s finance minister, Hany Kadry Dimian has said the government sees its budget deficit, if it does not implement reforms, running at 14-14.5% of gross domestic product in the fiscal year starting on July 1, above a target of 10-10.5% he gave in March, Reuters has reported. “The budget deficit, if we do not implement reforms, will be around EGP340-350bn ($48.6bn-$50.03bn), which is around 14 to 14.5% of GDP,” Dimian told a local TV station. Last month, Dimian cut the economic growth target for the fiscal year to the end of June to 2-2.5% from 3-3.5%.