Finance Minister Amr El Garhy yesterday delivered the FY2016/17 budget statement to Parliament, local papers reported. The budget targets narrowing the budget deficit to 9.8% of GDP from an expected 11.5% in the previous year and aims to registers economic growth of 5.2% in FY2016/17. Speaker of Parliament has referred the draft budget for discussion at the Budget Committee. We forecast a wider 11.6% of GDP fiscal deficit in FY2016/17 largely due to lower growth forecast and expectation of a weaker USD-EGP. For more details about the budget and our views, please refer to our latest macroeconomic update. (Al-Ahram, Mohamed Abu Basha)