Egypt's Budget Deficit Drops to 2.6%, Says Finance Min.

The Ministry of Finance announced that the total deficit of the state's general budget dropped by about EGP 97 billion during the period "July - October" of the current fiscal year 2024/25 to reach EGP 453.2 billion, equivalent to 2.6% of GDP, compared to EGP 550.2 billion, equivalent to 3.9% of GDP, during the same period of the previous year.

The ministry stated in a statement, Wednesday, that the primary budget surplus increased significantly during 4 months, reaching EGP 130.2 billion, compared to EGP 43.6 billion during the same period of the previous fiscal year, noting that it is the highest primary surplus achieved historically, and represents 3 times the primary surplus achieved during the same period of the previous fiscal year.

It attributed this to the significant increase in tax revenues by about 38.3% during the study period, which is the highest growth rate in 20 years, in addition to controlling public spending, in light of the improvement in debt management by distributing the burden of interest payments over the fiscal year, in addition to diversifying funding sources by reducing reliance on the unified treasury account and adhering to legal limits, and efforts to reduce public investments funded by the treasury.

It explained that total public revenues increased by about EGP 174.2 billion during 4 months, reaching EGP 648.2 billion, compared to EGP 474 billion during the same period of the previous fiscal year, as proceeds from tax revenues contributed about 86.5%, and non-tax revenues contributed about 13.1%.

The ministry pointed out that public expenditures increased by EGP 74.7 billion to record EGP 1.098 trillion in 4 months, compared to EGP 1.023 trillion during the same period of the previous fiscal year, in light of the government's continued efforts to take financial control measures and rearrange public spending priorities with an interest in human development and services provided to citizens.

it also said that it adopts balanced financial policies to achieve financial discipline and drive economic activity, improve the comprehensiveness of preparing and following up on the budget by merging 59 economic entities within the framework of the general government concept, and also prepare the budget in a strategic medium-term manner based on setting a ceiling for the government's general debt and public investments.