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Government looks to restore confidence in economy: Finance minister - Daily News Egypt

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Government looks to restore confidence in economy: Finance minister

Hopes to restore confidence in Egypt’s economy through tax legislation, reducing budget deficit

The government is looking to restore confidence in the economy in the near future according to Finance Minister Hany Kadry Dimian, who added Egypt is on the cusp of an economic take-off.

Dimian said that Egypt only experienced an economic recession during one quarter in 2011, and that the past two years have been recession-free.

“The main goal of all state policies is to restore confidence in the Egyptian economy and its ability to bear current and future burdens,” he said.

Dimian seeks to reduce the cash deficit by the end of the fiscal year (FY) 2014/2015 to 10%, reducing it further to 8% over three years.

According to Dimian, the ministry also hopes to expand the tax base in order to spread the tax burden across a wider group of tax-payers.

“Many indicators suggest that the recent vision for Egypt’s economy is a positive one what with the advent of political stability following presidential elections,” Dimian said.

He emphasised that solving the energy crisis was a priority, and that he hopes to arrive at a solution by utilising low-cost energy sources, adjusting prices, and opening the market to the private sector. This market opening would allow for it to invest in solar and wind energy in an attempt to fill the current energy gap.

The government is also looking to take into account the social dimension of its economic policies Dimian said, adding that managing the economy is in the public interest.

He explained that investors will only supply new investments when the soundness of fiscal and economic policies is verified.

Dimian pointed out that total government debt represents 94% of GDP, a figure that represents a major challenge for the government.

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