Egypt draft 2015/2016 budget projects 9.9 pct deficit, 5 pct growth

Egypt's cabinet approved a draft 2015/2016 budget that projects a deficit of 9.9 percent of gross domestic product, narrowing slightly from an expected gap of 10.8 percent in the current fiscal year.

The draft, which has yet to be approved by the president, sees a big increase in expenditure on social welfare programmes.

"Achieving social equality and improving the standard of living for those in need is the focal point of this budget," Finance Minister Hani Qadri Dimian said in a cabinet statement.

The draft budget projects a total of 431 billion pounds in expenditure on social programs, or about 49 percent of total public expenditure and a 12 percent increase on the current fiscal year.

Growth was projected at about 5 percent versus a projected 4.2 percent in the fiscal year ending on June 30.

Projected public revenues stand at about 599 billion Egyptian pounds ($78.6 billion), a 23.2 percent increase. Projected expenditure is 872.6 billion pounds, up 18.5 percent.

The budget also earmarks 38.4 billion pounds for bread and commodities subsidies.