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Government to reduce public debt to 92% of GDP in FY 2018-19: minister

Sunday 12 August 2018 01:48 PM


Egyptian Finance Minister Mohamed Ma'it said the country will reduce its public debt to 92 percent of the GDP in the budget of the current fiscal year 2018-2019, state-run Ahram newspaper reported on Saturday.

"The government has enforced package of procedures to reduce the public debt to 92 percent of the GDP compared with 98 percent in the previous year," the report said.

The new financial measures intended to increase the state's public revenues and control the government's expenditures, the minister said.

He added also that the financial performance would be improved after new laws on tariffs and taxes take into effect soon.

The government's plans for diversifying the state revenue resource will add 10 billion pounds (56 million U.S. dollars) to the country's treasury.

According to Waleed Gab-Allah, professor of financial and economic jurisdictions at Cairo University, "Egypt's economy owns the workforce and the resources but lacks funds, which forced the government to borrow."

To compensate for the debt, the government had to reduce its dependence on loans, and increase its revenues, Gab-Allah told Xinhua.