The Egyptian government aims to cut petroleum subsidies by about 26%, and electricity subsidies by 47% in the draft budget for fiscal year (FY) 2018/19, according to Reuters. The electricity subsidies budget registered at EGP 16bn, down from EGP 30bn in 2017/18. The cabinet referred Egypt’s new budget for FY 2018/19 to parliament’s planning and budgeting committee for discussion earlier this month. Despite the subsidy cuts, the new budget targets increasing public salary spending to EGP 266bn, up from EGP 240bn in the current budget, and spending on social welfare to EGP 332bn, according to a cabinet statement in April. The increase in social welfare spending aims to curb any negative effects of the upcoming subsidy cuts, which are expected to raise prices across the board.

Source: Daily News Egypt April 10, 2018 21:11 UTC