IMF To Visit Egypt After Morsi Approves Economic Reform Plan

Hany Kadry, assistant to the Minister of Finance, said Egypt will invite the International Monetary Fund’s (IMF) mission to visit the country after amending and approving the economic reform plan by the president Mohamed Morsi.

The economic reform program will be implemented in the upcoming period in a way that will not harm the poor, he noted. Kadry affirmed that rationing subsidies is an urgent need for the country because 20% of these subsidies are seized by the higher income segment. The subsidies provisions are four times the budget of the Ministry of Education and 12 times the budget of the Ministry of Health.

He added that the current period necessitates implementing new financing programs as well as reordering the budget’s items and rationing expenditures.

He stressed that there are challenges and sacrifices that will be faced and incurred by all people except the poor. The burdens will disappear as long as incomes decrease. He revealed that the Ministry considers some suggestions about supporting the poor such as offering gas subsidy coupons and increasing social solidarity pensions.

Kadry confirmed that the government will reduce the budget deficit gradually over the next two years, expecting the budget deficit to drop to 9% of GDP in FY 2013/2014.