Egypt not to follow austerity measures

Egypt: Egypt’s new finance minister, Ahmad Galal has said the country’s interim government will seek to avoid major austerity measures and instead work to stimulate the economy by improving security and pumping in new funds, Reuters has reported. The government inherits a budget deficit that since January has been running at around $3.2bn a month, almost half of all state spending. “One of the important tools to deal with the budget deficit is stimulating the economy,” Galal told reporters at a briefing. “We will seek to pump more new funds into the economy and not follow austerity measures. We do not want to increase taxes sharply, that is if we increase them at all, and we do not want to lower spending in a way that will slow a revival of the economy,” the minister said. []

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