Cairo – Mubasher: The Egyptian Ministry of Finance (MoF) is preparing to draft the state budget for fiscal year 2019/2020, a government official said.
The ministry has asked state-run entities to prepare for the state budget and clarify the actual need for the new fiscal year to begin forming the budget as of next January, Enterprise reported, citing the official.
The government aims at cancelling energy subsidies within the framework of the economic reforms backed by the International Monetary Fund- (IMF), which will drastically cut the budget deficit, the source highlighted.
He added that the MoF is projected to set oil prices at approximately $80 per barrel (pb) at the FY19/20 state budget draft.
It is worth noting that Capital Economics previously forecast Egypt’s gross domestic product (GDP) to accelerate between 5.5% and 6% during the period between 2018 and 2020, compared to 5% last year.
The government is looking to cut the current budget deficit below 8% of GDP during FY19/20 despite the hike in oil prices.
