The Egyptian Finance Minister has announced that the Government aims to unveil details of a new fiscal stimulus package shortly. The Government adopted its first stimulus package in the second half of 2013. The Finance Minister indicated that the new wave of fiscal measures would boost public investment and would finance the introduction of a public sector minimum wage, without increasing the budget deficit.
Egypt aims to reduce the budget deficit from 14 percent of gross domestic product (GDP) recorded in June last year, to around 10 percent of GDP by June 2014, and to subsequently 8 percent of GDP within the next two to three years. To achieve this objective, the Finance Minister has already emphasised the Government’s commitment to raising tax revenues to around 25 percent of GDP over the course of the coming years, from 15 percent currently. Additional revenue could be raised through the introduction of a value-added tax (VAT).
