Egypt Independent

Cabinet approves draft state budget



The cabinet on Wednesday approved the draft state budget for the 2011/2012 fiscal year, prior to sending it to the military council for endorsement on 1 July.

The government said the budget was devised in exceptional economic circumstances, whereby the growth rate is not expected to exceed 3.5 percent, a low rate that would not create enough job opportunities in the labor market.

It also said the budget put into consideration fixed expenses and necessary allocations of funds for social projects.

According to the budget, expenditure on investment was raised to 16.3 percent, with a view to keeping the deficit within safe limits so as not to increase the ratio between the general debt and GDP.

Total government expenditure in the new budget is LE490.6 billion, which corresponds to an increase of 14.7 percent of total expenses, while LE263.5 billion, or 54 percent of the budget, was allocated to education and health.

Public sector wages were increased by 23 percent, reaching LE117.5 billion, with another LE3 billion reserved for year-end bonuses.

Translated from the Arabic Edition