The Egyptian Ministry of Finance announced that the budget estimates for the next fiscal year 2020/2021, sent to the House of Representatives at the end of last March, will be kept as they are, until the vision is clear and any adjustments required once. That was after the Egyptian government announced at the end of last month that it had to amend the general budget for the next fiscal year, in line with the current global situation.
Egyptian Finance Minister, Mohamed Maait, stated that the draft budget still presumes the average price of a barrel of oil at $61, guided by the expectations of the International Monetary Fund and a large number of international financial institutions prepared and published in January 2020. This hypothesis will be updated after the clarity of vision during the coming period, in light of the decline in world oil prices significantly in March 2020.
Maait pointed out the importance of the "OPEC+" agreement aimed at reducing about 9.7 million barrels per day in May and June and 8 million barrels in July and August, and the settlement of the United States to cut 3 million barrels per day of its production, which will raise oil prices.
The fiscal year 2020/2021 budget aims to reduce the public debt ratio as a percentage of GDP to reach 82.7% by the end of June next year, which corresponds to and requires an initial surplus of 2% of output during 2020/2021.
Source (Al-Arabiya.net website, Edited)