afrol News, 29 May - The Cairo Ministry of Finance this week issued statements of economic success, despite higher world market prices on import commodities such as food. Public revenue had increased even faster than import expenditure, thus creating a greater surplus, the Minister said. A 7.1 percent growth in GDP is expected for 2008.

The public treasury has shouldered Egyptian pound 31.6 billion (euro 3.8 billion) worth of further burdens in public spending in order to confront world prices increase during the current fiscal year, according to a statement issued by the Cairo Ministry of Finance this week. "These sudden burdens account for 3.6 percent of the gross domestic product adding, however, these burdens did not affect the basic balance of the national economy," Minister of Finance Youssef Butros Ghali said in the statement.

He said these burdens include EG£ 23.7 billion (euro 2.9 billion) worth of support for oil derivatives, EG£ 5.8 billion (euro 700 million) for subsidising supply commodities, and adding 15 million citizens to supply ration cards. Minister Ghali added that these burdens also include increase of the salaries of the state civil servants by 30 percent, incentives for employees in municipalities and EG£ 600 million (euro 72 million) for increasing pensions by 20 percent as of this month.

Despite these extra expenses, Minister Ghali said the Egyptian economy was on a good track, achieving successes in its economic reform programme. He said GDP growth rate was expected to register 7.1 percent this year, adding that domestic debt accounted for 69 percent of the gross domestic product compared to 81 percent last June and more than 100 percent in June 2005.

The government has experienced a large increase - by 17.6 percent - in public revenues. Especially a rise in international fuel prices has given additional tax revenues, making it possible to reduce the budget deficit. Tax revenues related to oil production are set at EG£ 29.6 billion (euro 3.56 billion). Public revenues are expected to increase to a total of EG£ 212 billion (euro 25.5 billion) this year.

Another increase in revenues had been registered in the Suez Canal tolls, hitting EG£ 9.9 billion (euro 1.19 billion). The increase rate in revenues from the Canal during the last year reached 21 percent. 6,777 vessels transited the canal during this period with 292,354 tonnages, according to the Ministry.

By staff writer

© afrol News

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