Egypt to cut fuel subsidies, increase net debt issuance in 2020/21 budget

Reuters , Wednesday 22 Apr 2020

Egypt is allocating EGP 52.963 billion for fuel subsidies for the 2020/21 fiscal year, which begins on July 1

Egypt plans to cut spending on fuel subsidies by 47% in its 2020/21 budget to EGP 28.193 billion  ($1.8 billion), an explanatory note for its draft budget published on Tuesday showed.

It allocates EGP 52.963 billion for fuel subsidies for the 2020/21 fiscal year, which begins on July 1.

In the most recent data available, the government cut its spending on fuel subsidies by about 69% to EGP 7.25 billion in the July-September 2019 quarter.

The government’s draft budget also shows it aims to increase its net debt issuance by 19.7% to EGP 974.482 billion.

Its plans include issuance of treasury bonds worth EGP 700 billion and treasury bills worth EGP 274.482 billion, the document said.

$1 = 15.7000 Egyptian pounds 

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