Ministry of Finance to amend FY18/19 budget deficit target
Ministry of Finance is planning to amend the FY18/19 budget deficit target at end of month, on projections that Egypt may miss the original 8.4% of GDP target envisaged originally. A government source told Enterprise that the deficit for the year is projected to fall to 8.6% of GDP. The source blamed rising US interest rates and a spike in oil prices this year for the amended targets. Initial budget projections had assumed an oil price of USD65/bbl. Oil prices have been hovering in the USD80 neighbourhood since the summer, prompting the Madbouly government to look into hedging strategies. The source said the Ministry’s strategy to keep the budget on target this time will be to “ensure the state gets what it is owed”, in addition to the state privatisation programme. The change in the deficit target is expected to be officially announced, once the government releases macro indicators for 1Q18-19, the official said.
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