The Egyptian budget deficit for fiscal year (FY) 2017/18 was 9.8% of gross domestic product (GDP), a decrease from 10.9% the previous year, achieving a primary fiscal surplus for the first time in 15 years, deputy finance minister Ahmed Kouchouk stated on July 26, according to Reuters.

Tax revenues increased by 36% for FY 2017/18 to LE628 billion and the fiscal surplus resulted in an additional revenue of LE4 billion ($224 million), Kouchouk added.

As a part of a $12 billion IMF loan agreement, fuel subsidies have been cut using an IFM automatic fuel price mechanism that protects Egypt’s budget from movements in the global oil markets, Egypt Oil & Gas previously reported.

The fund said in a staff-level report that the mechanism will adjust the prices of most types of fuel to reflect changes in global oil prices, the value of the Egyptian pound, and the proportion of imported fuel in national consumption.