Draft Law to Cut Govt Spending By LE 24 Billion

The Finance Ministry referred to the Cabinet a draft law to cut the government's spending by LE 24 billion in a bid to lessen a deficit of LE 160 billion, said Finance Minister Momtaz al-Saeed.

The Minister pointed out the rationalization of spending would not affect the subsidy of bread and strategic commodities for low-income categories.

"Rationalization will include rewards for top-management officials, cars used for private purposes, electricity, telephones, travel allowances and budgets of diplomatic representation offices abroad. "The minister said in statements on Tuesday 27/12/2011.

Saeed expected that the sum of LE 2 billion would be saved out of rationalization of subsidy of electricity and energy.

On the other side, the government is considering to float $ 2 billion in government bonds in January 2012 to finance the government's commitments from foreign exchange.