Egypt posts 0.2% primary surplus in first 3 months of FY2019

Egypt achieved 0.2 percent as a primary surplus of gross domestic product (GPD) during July to October of financial year 2018/2019 from primary deficit of 0.2 percent during the same period of financial year 2017/2018, Minister of Finance Mohamed Maait said.

The minister added during the Cabinet’s meeting that the overall deficit of the budget declined to 2.5 percent of GDP, compared to 2.7 percent during the prior year and 3.1 percent during the last three years.

He pointed out that these rates are achieved as a result of improved economic activity and the government’s consistent implementation of the economic and financial reform program.

Most of the fiscal measures targeted at the budget were approved at the beginning of the financial year (June/July 2018), mainly the rationalization of energy subsidies; oil and electricity, the adoption of amendments to the Development Fee Law, the increase in the tax on tobacco and cigarettes, the implementation of the package of comprehensive social measures, he added.

The minister also stated that the government implemented comprehensive social measures, including the increase in wages and pensions, and reviewed the limit of tax exemption to reduce the negative impact of the reform measures on the most-favored-care groups, which cost 1.3 percent of GDP.

Ma’it pointed out that revenues continued to rise to achieve an annual growth rate of 34.2 percent during the period (July-October) of the fiscal year 2018/2019, which exceeded the growth rate of general expenses amounting to about 24 percent during the same period.

He referred to the improvement of tax revenues by about 36 percent, compared to an average growth rate of 27 percent during the last three years.

Ma’it pointed out that the government investments during the period (July-October) of the fiscal year 2018/2019 reached about 69 percent to LE 37 billion, of which about LE 25.6 billion are investments financed by the treasury.

The allocation of goods and services increased by 73 percent during this period, especially in terms of allocations for education and health sectors, reflecting the government’s keenness to meet the basic needs of citizens and increase spending on human development, maintenance and infrastructure development in all governorates, the minister added.

For her part, Minister of Planning Hala el-Saeed said that the government investments jumped 46 percent as a result of the government’s success in achieving financial discipline and spending pressure.

Source: Egypt Today