Egypt's cabinet referred the draft budget for the 2014-2015 fiscal year to President Adly Mansour for approval.
Egypt's fiscal year begins on 1 July.
On Monday, Finance Minister Hany Demian said in a statement that public spending in the new budget is LE807 billion, a 10 percent increase from this year’s budget.
Total revenues are projected at LE517 billion, which is less than 2014 and grants are projected at US$2.4 billion in the form of petroleum products.
The budget deficit is projected at LE288 billion, which is 12 percent of GDP.
Petroleum products subsidies amount to LE104 billion, compared to LE134.3 billion this year.
“Reducing energy subsidies entails corrective measures in pricing policies without affecting low-income brackets,” the minister added.
He also said that there is an increase in fuel efficiency, an expansion in smart cards petroleum products distribution in order to achieve justice and prevent smuggling and more reliance on renewable energy resources.
Edited translation from Al-Masry Al-Youm
