Egypt's Sisi approves growth plan, deficit-cutting budget

CAIRO: Egypt's President Abdel Fattah al-Sisi approved the 2016-2017 draft budget on Thursday, as well as an economic development plan, and sent both to parliament for passage, state news agency MENA said.

The draft budget reduces the deficit for 2016-17 to 9.8 percent of gross domestic product from the current 11.5 percent, and the development plan targets a growth rate of 5.2 percent versus 4.4 percent now, MENA said.

Egypt's government had on Wednesday approved a draft with a deficit of 9.9 percent and economic growth of 5-6 percent and passed it to the president for amendments.

Egypt, which relies heavily on imports, has been battling a shortage of dollars since an uprising in 2011 that drove away tourists and foreign investors, two big sources of hard currency.

The central bank devalued the pound this month, which economists said would encourage foreign investment but risks driving up inflation and hurting the poor.

The draft budget aims to reduce unemployment to below 12 percent from its current level of roughly 12.8 percent, MENA said.