(Adds analyst quote)<\/p>\n
CAIRO, April 25 (Reuters) – Egypt expects its debt financing needs to rise by 7.1% to 1.068 trillion Egyptian pounds ($68.1 billion) in the financial year that runs to June 2022, according to a copy of the draft budget seen by Reuters.<\/p>\n
The government projected raising 66 billion pounds of this by selling international bonds, down from 72 billion pounds this year, the draft budget said.<\/p>\n
The cabinet approved the draft, which targets a budget deficit of 6.6%, on March 24, but the document still needs to be approved in parliament.<\/p>\n
\u201cIf they are able to achieve that it would be very positive,\u201d said Allen Sandeep of Naeem Brokerage. \u201cThe deficit target of 6.6% is a sharp reduction from the target of 7.8% this year and the actual deficit of 7.9% in 2019\/20.\u201d<\/p>\n
The government projected its fuel subsidy bill would drop by 35% to 18.4 billion pounds, while tax revenues were projected to increase by 1.9% to 983 billion pounds.<\/p>\n
Egypt, often the world\u2019s largest wheat buyer, also projected it would provide 8.6 million tonnes of the grain to the public, of which it planned to import 5.1 million tonnes.<\/p>\n
The draft budget projects an average interest rate of 13.2% on domestic treasury bills and bonds, down from 14% this year.<\/p>\n