Egypt cuts fuel subsidies in new budget



CAIRO // Egypt announced deep cuts in energy subsidies in its budget for the 2014/15 fiscal year on Monday, a first step toward reducing the deficit after three years of political turmoil that have battered the economy.

Some 40 billion pounds (Dh20.53 billion) worth of savings were made by curbing planned spending on energy subsidies to 100.3 billion pounds in the next fiscal year, finance minister Hany Kadry Dimian told a news conference.

President Abdel Fattah El Sisi rejected the first draft of the budget, which comes into effect on Tuesday, complaining that it was too extravagant and mounting debts would leave nothing for future generations.

Mr El Sisi approved on Sunday a tightened budget that seeks to reduce the deficit to 10 per cent of gross domestic product in the next fiscal year, from an expected shortfall of 12 per cent in the 2013/14 fiscal year that ended on Monday.

Mr Dimian did not announce exactly how the energy subsidy savings would be made and said there was no timeline for petroleum price increases or other reforms for the sector.

Egypt originally budgeted 99.6 billion pounds in energy subsidies for this fiscal year, but a finance ministry spokesman said this target had not been met and the actual spending on energy subsidies was closer to 144 billion pounds.

The spokesman said savings would come through redistribution and restructuring, without giving details.

Dimian said the Egyptian economy was expected to grow by more than 3 per cent in the next fiscal year, which is in line with previous forecasts and too low to create enough jobs for the rapidly growing population in this country of 86 million.

The turmoil of the past three years, with two presidents overthrown and hundreds of people killed in the streets, has hit the tourist industry and investment, worsening a huge unemployment problem and pushing up the budget deficit.

Subsidy cuts could prove unpopular with many ordinary Egyptians struggling to make ends meet, particularly during the month of Ramadan.

* Reuters

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

UAE currency: the story behind the money in your pockets
Four-day collections of TOH

Day             Indian Rs (Dh)        

Thursday    500.75 million (25.23m)

Friday         280.25m (14.12m)

Saturday     220.75m (11.21m)

Sunday       170.25m (8.58m)

Total            1.19bn (59.15m)

(Figures in millions, approximate)

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MATCH INFO

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According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Where to apply

Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020

Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.

The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020. 

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Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
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Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

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Fuel economy combined 12.2L / 100km

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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