June 24, 2019 / 3:51 PM / 22 days ago

UPDATE 1-Egypt's parliament approves FY 2019/20 budget targeting 7.2% deficit

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CAIRO, June 24 (Reuters) - Egypt’s parliament approved the government’s 2019/2020 budget on Monday, targeting a 7.2% deficit for the year and 6% GDP growth.

That compared with expactations of a budget deficit of 8.4% of gross domestic product and 5.6% GDP growth in the 2018/19 fiscal year that ends on June 30.

The new budget sees a debt-to-GDP ratio of 89% by the end of June 2020, from a projected 86% in the 2018/19 fiscal year.

The budget allocates 52.963 billion Egyptian pounds ($3.18 billion) for fuel subsidies, down from 89.75 billion pounds this fiscal year.

In a letter to the IMF in January, Egypt said it would remove subsidies on most energy products by June 15 as part of a three-year, $12 billion loan programme with the lender.

The subsidies have yet to be lifted and the government has not said when it will raise fuel prices. ($1 = 16.6800 Egyptian pounds) (Reporting by Nashaat Hamdy; Writing by Yousef Saba; Editing by Alison Williams and Andrew Hevens)

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