Egypt's energy subsidy bill reached 41 billion Egyptian pounds ($4.62 billion) during the first nine months of the 2015-16 financial year, down 27 percent from 56 billion in 2014-2015, an oil ministry official told Reuters on Thursday.

Oil Minister Tarek El Molla said on Tuesday that the bill would reach between EGP45 and EGP48 billion for the full year.

Egypt set the subsidy bill for the next fiscal year, due to start this July, at EGP35 billion.

The new budget slashes its total subsidy bill by 14 percent in the coming fiscal year 2016/17 compared to the current fiscal year to end in June, according to the latest data from the finance ministry.

The 2016/17 draft budget published on the ministry’s website on Sunday showed the total subsidy registering EGP 130.1 billion.

Egypt embarked on a fiscal reform programme in July 2014 in an attempt to curb the growing state budget deficit through cutting subsidies and introducing new taxes, including the value added tax.