Egypt’s budget deficit climbs 18pct in Jul-Apr on high debt service

Egypt’s total budget deficit rose by 18 percent in the first ten months of the current fiscal year 2015/16 compared to the same period of last year, to register 9.8 percent of the country’s gross domestic product (GDP), the finance ministry’s May bulletin showed Tuesday on its website.

From July to April the budget deficit amounted to 273 billion Egyptian Pounds  with the country’s debt service (191.1 billion) significantly rose by 36 percent compared to the same period a year before making up more than third of the total expenditures.

The total public expenditures during this period recorded a rise of 8 percent against the first ten months of last fiscal year to amount to 587.6 billion pounds or 21 percent of GDP.

According to the bulletin, the total government debt (domestic and external) reached 2.54 trillion pounds or roughly 92 percent of GDP at end of December 2015.

Egypt’s finance minister expects the budget deficit to reach 11 to 11.5 percent of GDP, way above the initial target of 8.9 percent.

The state’s revenue rose to 327.5 billion pounds or 12 percent of GDP in the period of the study, against 321.1 billion pounds a year prior. The ministry attributed the increase to the rising taxes yields that amounted to around EGP 244 billion versus  239 billion pounds in July-April of the fiscal year 2014/15.

*The official exchange rate for $1 = EGP8.78