Egypt expects its borrowing needs to rise by 7.1 percent to EGP1.068 trillion ($68.1 billion) in the financial year 2021/22 that will begin in July, according to a copy of the draft budget.
The budget forecast an overall deficit equivalent to 6.8 percent of gross domestic product, down from 7.7 percent this year, and a primary surplus of 5.1 percent.
The cabinet approved the draft, which targets a budget deficit of 6.6 percent, on March 24, but the document still needs to be approved in parliament.
The government projected raising 66 billion pounds of this by selling international bonds, down from 72 billion pounds this year, according to the draft.
The draft budget projects an average interest rate of 13.2 percent on domestic treasury bills and bonds, down from 14 percent this year, and the debt period to increase to 4.2 years from 3.6 years expected by next June.
The government projected its fuel subsidy bill would drop by 35 percent to EGP18.4 billion and its tax revenues would increase by 1.9 percent to EGP983 billion.
Often the world’s largest wheat buyer, Egypt also projected it would provide 8.6 million tons of the grain to the public, of which it planned to import 5.1 million tons.
Finance Minister Mohamed Maait told the parliament on Sunday that 2021/22 expenditure would be EGP2.46 trillion pounds.
The budget was based on economic growth forecast at 5.4 percent - up from an estimated 2.8 percent this year - and inflation of seven percent, Maait told a press conference.
He affirmed that the draft budget reflects the presidential directives to maximize aspects of public spending to improve the citizens’ standard of living.
