Finance Board Approves Several Cuts, Lowers Mill Rate

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August 2, 2013 by apicomely

Looking for a good investment? Consider Egypt: finance minister

Posted by Daniel DeBlasio (Editor) , August 01, 2013 at 10:02 PM Next Previous Slideshow Download The Board of Finance has approved several budget cuts, reducing the budget and lowering the mill rate to 23.4. The Board of Selectmen sent a list of proposed budget reductions , generated by Woodbury department heads at the request of First Selectman Jerry Stomski, to the finance board Wednesday. The finance board then met Thursday night and approved every one of the proposed reductions with the exception of a $10,000 cut for elimination of a part-time police officer. The largest reduction approved by the board was a $100,000 cut from the roads account. The board then put an additional $96,000 fromthe projected surplus into the budget, according to Board of Finance Chair Bill Butterly.

He also said that the foreign direct investment policy would be liberalized beyond just big box retail and airlines currently as the government tries desperately to bring in money from abroad. Meanwhile, the FinMin did the usual cheerleading, saying he was confident the government could finance the current account deficit now nearly 5% this year without pulling money out of Indias foreign cash reserves. India has $279 billion in foreign reserves as of July 19, according to the Reserve Bank of India. Emerging market countries often use reserves to fend off speculative attacks against its currency, and to provide a cushion against external debt service.

India’s Finance Minister Vows Not To Overspend

The Egyptian economy expanded by 2.2 percent in the first quarter of 2013, sharply down from 5.2 percent a year before. “The economic performance during all transitions everywhere, not just in Egypt, goes through a slowdown: inability to create enough jobs, investment is not taking place, imbalances are taking place. Also, budget deficits are growing, inflation is higher, and these problems are not new,” he said. “All transitions go through these difficulties. In fact I would even argue that the difficulties the Egyptian economy is going through now are less severe compared with the problems encountered, for instance, in Eastern Europe, during the transition.” In “normal circumstances” Egypt’s economy would grow by 4.5 percent-to-5 percent per year, Galal said, adding that economic progress was contingent on increasing political stability.

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