Egypt’s new budget cuts fuel subsidies 40% in FY20: FinMin

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A finance ministry report on Egypt’s new budget (2019/20) showed that fuel subsidies will be reduced by 36.112 billion pounds or 40 percent within the new financial year, Finance Minister Mohamed Maait said in a review of the 2019/2020 budget before parliament on Tuesday.

The report said the government decided to reduce fuel subsidies from 89.075 pounds in 2018/19’s budget to 52.963 billion pounds in the 2019/20 budget.

“This means that there will be a 40.5 percent cut in subsidies – or 35.476 billion – allocated to fuel,” said the report, indicating that the government took this step upon the grounds that the price of oil stands at $68 per barrel.

As for electricity subsidies, the report indicated that they will be phased out by 75 percent in the new budget.

“Financial allocations to electricity subsidies will be reduced by 12 billion, or from 16 billion to 4 billion.”

Finance Minister Maeet and Minister of Planning Hala El-Saeed delivered statements on Egypt’s new budget and development plans before parliament on Tuesday. The statements were referred to parliament’s budget and planning committee for review and discussion.

Source: Ahram Online