Prime Minister Ibrahim Mehleb submitted the new draft budget to President Abdel Fattah al-Sisi on Sunday.
Sisi had rejected an earlier budget due to a staggering LE288 billion deficit.
The deficit in the draft budget submitted Sunday has been reduced by LE48 billion to LE240 billion.
A cabinet official said petroleum subsidies were reduced to about LE90 billion.
"The cabinet will increase the prices of petroleum products and energy, especially for energy-intensive industries," the official told Al-Masry Al-Youm. "The budget is expected to be approved Sunday."
"The cabinet has held a number of meetings during the past few days, most importantly between Mehleb and Petroleum Minister Ismail al-Sherif, to discuss the broad outlines of the draft budget and review the new prices of petroleum products," the official added.
Edited translation from Al-Masry Al-Youm