Analysis - New Egypt government may promote welfare, not economic reform


CAIRO (Reuters) - Egypt's new military-backed government faces intense pressure to repair the state's chaotic finances but is likely instead to spend billions, hoping to raise living standards and get protesters off the streets.

A budget deficit that has soared to about $3.2 billion a month, worsened by weak tax revenues and a wasteful system of fuel and food subsidies, is the biggest threat to economic stability following Egypt's 2011 revolution.

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