Egypt’s parliament approved the government’s 2019/2020 budget on Monday, targeting a 7.2% deficit for the year and 6% GDP growth.
That compared with expectations of a budget deficit of 8.4% of gross domestic product and 5.6% GDP growth in the 2018/19 fiscal year that ends on June 30.
The new budget sees a debt-to-GDP ratio of 89% by the end of June 2020, from a projected 86% in the 2018/19 fiscal year.
The budget allocates 52.963 billion Egyptian pounds ($3.18 billion) for fuel subsidies, down from 89.75 billion pounds this fiscal year.
In a letter to the IMF in January, Egypt said it would remove subsidies on most energy products by June 15 as part of a three-year, $12 billion loan program with the lender.
The subsidies have yet to be lifted and the government has not said when it will raise fuel prices. ($1 = 16.6800 Egyptian pounds)