Moments ago, Egypt’s Prime Minister Dr. Mostafa Madbouly announced that the Gross Domestic Product (GDP) registered a growth at 5.6 percent for ending fiscal year 2018/2019, where the budget deficit dropped to 8.2 percent, less than the 8.4 percent which was expected.
An official statement released by Dr. Madbouly’s office added that a preliminary surplus was achieved at 2 percent.
Earlier speculations were indicating a gradual decrease in the public debt to reach 90 percent of the GDP, compared with the targeted 93 percent.
In April, Minister of Finance Mohamed Ma’it reviewed Egypt’s draft budget for new fiscal year 2019/2020 in the Parliament, stating that the draft budget aims to increase the growth rate to about 6 percent, at a cost of LE 6.163 trillion.
Ma’it added that the new budget focuses on the growth of containment and sustainability to result in reducing inflation to 10.5 percent, and the unemployment rate to 9 percent.
The minister stated that it also aims at reducing the total budget deficit to about 7.2 percent of GDP.
Back then, the minister noted that revenues are foreseen to record LE 1.13 trillion, compared to the current FY’s expected revenues of LE 969 billion, with an increase of 17 percent. The budget revealed that LE 856.6 billion go for tax collections with an increase of 13 percent and other earnings rise 30 percent to LE 277.8 billion.
Egypt’s total resources in the new budget recorded LE 1.979 trillion, representing 31 percent of GDP, distributed over three main categories which are: revenues (LE 1.134 trillion, representing 18.47 percent of GDP), receipts from the acquisition of financial assets amounting to LE 24 billion by 0.4 percent of GDP, and Borrowing and issuing securities amounting to LR 821 billion (representing 13.3 percent of the GDP).