Cairo's subsidy bill grows by 130 per cent

15 July 2008

Egypt’s subsidies bill for the first 11 months of the financial year rose to£E76bn ($14.3bn), according to figures released by Minister of Finance Youssef Boutros Ghali.

The figures, which cover the period from 1 July 2007 to 30 May 2008, marked a 130 per cent increase on the £E33bn ($6.2bn) figure for the same period in the previous financial year.

The increase is largely due to Cairo's efforts to offset the impact of high international food and fuel prices on the Egyptian population.

Revenues and grants rose to £E186.5bn ($35.1bn) in the latest period, accounting for 21.4 per cent of GDP.

Tax revenues grew by 30.7 per cent year-on-year to a record £E120.7bn ($22.7bn). Of that, £E60bn ($11.3bn) came from income tax, which was up 35.9 per cent on the previous year.

Corporate tax revenues rose by 40.6 per cent to £E49bn ($9.2bn) and revenues from sales and customs tax reached £E43.1bn ($8.1bn) and £E13bn ($2.4bn) respectively.

Salaries and wages for government employees rose by 20.4 per cent to £E51.5bn ($9.7bn).

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