Reuters reported that Egypt's government will increase natural gas and electricity prices paid by heavy industries by 33% this month to narrow its growing budget deficit

Al-Ahram newspaper reported on Sunday that the higher rates would be applied to steel, cement and ceramics industries and are part of a plan to shave EGP 20 billion Egyptian off the deficit.

The uprising that unseated Mr Hosni Mubarak in February has hammered Egypt's economy, and the government has been struggling to find ways to finance its deficit as interest rates on some treasury debt soar to above 15%.

Al-Ahram quoted the central bank governor last week as saying the deficit in the year that began on July 1 could be as high as EGP 182 billion compared to EGP 134 billion the government had forecast in June. This would work out to about 11% of gross domestic product.

Economists say cutting energy subsidies, which represent about 20% of total spending, is one of the few practical options the country has to cut the deficit.

(Sourced from Reuters)