The Egyptian Minister of Planning and International Cooperation Ashraf Al Araby said the only way for Egypt to not to resort to foreign borrowing is to reduce the budget deficit, noting that the government currently seeks loans to finance the budget deficit.
He revealed that lowering the budget deficit by 1% will save the country EGP 8 billion, adding that Egypt targets to reduce the deficit to reach 10% from 15% to save EGP 40 billion.
Al Araby cited Turkey as an example saying that the country was about to go bankrupt in February 2000, but it implemented a strategy to lower the budget deficit in 2002 through borrowing and cancelling subsidies, until it has became a strong country as it lent the International Monetary Fund (IMF) US$ 5 billion.
The Egyptian government has set a strategy to double the national income by 2022, Al Araby noted, affirming that Egypt has the sufficient capabilities to achieve such target.
