The Egyptian Finance Ministry expected budget deficit to shrink to 6.3% of the country’s gross domestic product (GDP) in FY 2020/21, compared to the 7.2% target in the current budget, Invest-Gate reports.

The FY 2020/21 draft budget is based on an oil price of USD 61 per barrel, the finance ministry said on March 30, down from USD 68 in the current budget but around three times higher than the current price.

The government’s spending will reach EGP 1.71 trillion during FY 2020/21, a rise of 9% from the EGP 1.57 trillion allocated for the current fiscal year.

The health spending will increase to EGP 95.7 billion, while spending on the education sector will rise by 70% to EGP 132 billion.

In addition, the government’s investments will hit EGP 280.7 billion, a 64% increase from the current fiscal year.