Egypt’s “Official Publication for the Preparation of Fiscal Year (FY) 2018/2019” has stated a number of reforms aiming at rationalizing energy subsidies and expenditure, Al Mal News reported.
The annual publication is released by the Egyptian Ministry of Finance to state the priorities and basics, on which the new budget will be set, for all governmental entities to base their own budget on.
The reforms will prioritize national expenses. One of the main angles addressed will be the gradual rationalization of un-targeted subsidies, such as energy subsidies, and in-turn increasing subsidies to more targeted sectors.
Furthermore, the new budget will aim at the continuity of structural and financial reforms in the energy sector, as these reforms are necessary for prevent price distortions and to secure the demands of developments.
According to the publication, the government’s plan includes the decease of the subsidies of petroleum products and electricity.
The new budget is the final FY in the grace period of the economic reform loan granted by the international monetary fund (IMF) to Egypt.