Egypt's 2012/13 budget deficit reaches $35bn

[DJKeefy]

Egypt's 2012/13 budget deficit reaches $35bn: initial figures .

Egypt registered a state’s budget deficit of LE240 billion (roughly $34.8 billion) for the fiscal year 2012/13, representing 14 percent of gross domestic product (GDP), initial figures released by finance ministry on Friday show.

Egyptian Finance Minister Ahmed Galal has stated that the government aims to diminish the deficit to nine percent of GDP, and to push up the growth rate to four percent.

Egypt's growth rate is expected to reach an average of 2.3 percent for the fiscal year 2012/13, according to initial figures announced.

Also according the initial figures of the state’s bill for the fiscal year 2012/13, public expenditures reached LE582.7 billion (roughly $84.5 billion), a rise of nine percent over the governmental plan to spend LE533.7 billion (roughly $77.4 billion).

Egypt’s public spending stood at LE471 billion (roughly $68.3 billion) in the fiscal year 2011/12.

On the other hand, the public treasury saw initial revenues of LE344.6 billion (roughly $50 billion) — 12 percent less than expected.

According to the statement, tax revenues recorded LE251.1 billion (roughly $36.4 billion) during the 12 months that preceded 30 June 2013.

The Egyptian government is expecting an additional LE322 billion (roughly $46 billion) in tax revenues, as part of the 2013/2014 budget, an Egyptian Tax Authority (ETA) official told Ahram Online in August.

The total subsidy bill swelled to reach LE197 billion (roughly $28.5 billion) in 2012/13, almost third of which allocated to energy subsidies that stood at LE120 billion (roughly $17.4 billion).

The state budget was LE157.8 billion (roughly $22.8 billion) in the fiscal year 2011/12.

Egypt’s previous government, under the ousted Islamist president Mohamed Morsi, introduced smart-card system in an attempt to curb fuel smuggling and to rationalise petrol subsidies by around LE20 billion in the fiscal year 2013/14.

The smart-card system is still operational under the current government, led by the liberal Interim Prime Minister Hazem El-Beblawi, managed by a triad between the finance ministry, the interior ministry, and E-finance Company.

Source: http://english.ahram.org.eg/News/81583.aspx

[A-Four]

Oh boy, in any language, this is the equivalent of state of play in Greece in 2011,...................................times by 10,.............then times by 10 for the population factor,..................holy mother of Mary, the baby Jesus and all glorious saints,..............................................this is the abyss, and no property tax alone is ever going to pay this debt.

If Egypt is to truly get its act together, expect oil price to double over night, a little like what happened in Nigeria 18 months ago, and that would be the starter.

[LovelyLadyLux]

Egypt probably needs to start talking to China......THEY seem happy to lend and lend and lend.

[biosceptic]

Egypt probably needs to start talking to China......THEY seem happy to lend and lend and lend.

And that is yet another mire - what will China expect later in return? The Chinese are excellent financial managers and will expect their pound of flesh!!!

[LovelyLadyLux]

For sure they will and once China starts to call in their markers, so to speak, depending on the terms of the loan it could really open a HUGE can of worms.

[jewel]

But, apparently China is looking at drastic economic collapse in the not too distant future, with their opaque financial system it will be hard to tell exactly when, but it seems that all the 24/7 companies are down to 1 or 2 shifts, and with no one buying Chinese goods en masse as before the economic collapse, it appears they are in a downward spiral. The trickle down what trickled up theory.

[Who2]

One Chinese enterprise seems to be booming here in Egypt, fake cigarettes.
They the Chinese originally concentrated on the high end market Marlboro, now they copy the low end market Cleopatra knowing full well that due to the Egyptian economy the working classes are happy to pay the lower price.
200 Egyptian Cleopatras can be purchased for 58le Chinese's fakes for 35le. The fakes are substandard and 'not fit for purpose will no-doubt be causing many premature deaths in the not to distant future.
Even after pointing out the substandard packaging and content the retailers and it seems endusers are happy to pay for the inferior product, one making more profit and one assuming they are saving money.
Those that don't smoke wont be bothered by this revelation but it's only the thin end of the wedge, what will surface next from those sneaky mass market producers of rubbish ?........
Ps: stir fry'd dog, sweet & sour cat ? all from your local supermarkets, times are tough and they are inscrutable little b**t***s.
Think it cannot happen, think again. 'my little pony'
Pss: Vegans & vegetarians! McD 'pink slime can be turned into 'white slime and made into tofu & noodles.

[Who2]

A fascinating subject so it seems:
Currently, there are about 400 billion fake cigarettes being produced in China, enough to supply each U.S. smoker with 460 packs of fake Marlboros, Newports or Benson & Hedges. Surprisingly, about half of those all come from one place -- Yunxiao, a county in the south of China roughly twice the size of New York City and home to 200-plus counterfeit cigarette operations hidden underground. And we meant that last part literally. Yunxiao's illegal cigarette factories are actually hidden below the surface of the city, in neighboring mountain caves and under streets, temples and once even a lake.....

Read more: http://www.cracked.com/article_19742_th ... z2f2LALPcM

And even more:
In 2012, Egyptian authorities seized 162 million counterfeit cigarettes set to be smuggled through ports in Alexandria and Port Said, according to a company release. The smugglers had hidden the cigarettes in shipments of furniture, electronics and diplomatic parcels.
Experts say the illegal tobacco trade has increased domestically in the past two years due to lax security measures following the revolution. More Egyptians are also turning to smuggled cigarettes in anticipation of further price raises due to government tax hikes.

Edited translation from Al-Masry Al-Youm

And More:.......

But, as always, buyer beware. The Organized Crime and Corruption Reporting Project says lab tests have shown counterfeit cigarettes from China to contain "80 percent more nicotine and 130 percent more carbon monoxide," and "impurities that include insect eggs and human faeces."
Makes one feel like quitting.......

[pdmlynek]

Boy, I wish our annual budget deficit would be 35 billion USD....

[A-Four]

Boy, I wish our annual budget deficit would be 35 billion USD....

Hey, come on Pdmlynek your last years result was more than $1,500 Billion, you know that you lot over there are on another planet,........ and don't forget 'poor' old 'little' China is holding one hell of a lot of your $'s.