(Ecofin Agency) - The government of Egypt forecasts budget deficit to be 7.2% of GDP, and economic growth to be 6% during the financial year 2019-20. This is featured in the State budget adopted June 24 by the parliament.
For the FY2018-19, that ends June 30, the government planned an 8.4% deficit and a 5.6% economic growth. This year, the State budget provided for a debt-to-GDP ratio of 89% at end-June 2020, against 86% for the previous year. Subsidy on energy products is EGP89.75 billion, against EGP52.963 billion ($3.18 billion) in 2018-19.
The government says it will phase out subsidies on most energy products as part of a three-year $12 billion assistance program concluded in 2016 with the International Monetary Fund (IMF).