Egypt to cut fuel subsidies by 47% in 2020/21 budget

Egypt plans to cut spending on fuel subsidies by 47 perecent in its 2020/21 budget to 28.193 Egyptian pounds billion ($1.8 billion), according to an explanatory note for draft budget.

The budget allocates 52.963 billion Egyptian pounds 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 percent to 7.25 billion pounds in the July-September 2019 quarter.

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

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