Egypt planning slew of IPOs to boost 2018-19 budget
Listing 23 Egyptian state-owned companies on the stock exchange is among several steps that the recently announced state budget will rely on to achieve a 5.8% growth rate in the next fiscal year.
CAIRO — Egypt's ambitious 2018-19 proposed budget aims to achieve a gross domestic product (GDP) growth rate of 5.8%, the highest in 10 years. The budget bill also seeks to reduce the total deficit to 8.4% of GDP, compared with 12.5% in 2015-16. It is also designed to increase state revenues by 22% and reduce the debt-to-GDP ratio to 91%.
The Egyptian government referred the public budget bill — at 1.412 trillion Egyptian pounds ($80 billion) — to parliament March 29, according to a press statement. In the bill, the government commits to increasing investment allocations to $8.4 billion in a bid to improve infrastructure and basic services. In addition, the budget calls for maintaining subsidies and social protection programs valued at $18.4 billion.
