Egypt posts historic surplus, budget deficit shrinks in 4 months

Egypt’s overall budget deficit substantially fell by 97 billion Egyptian pounds during the first four months of the current fiscal year (July–October).

According to a statement by the Ministry of Finance on Wednesday, the deficit now stands at 453.2 billion pounds, or 2.6 per cent of GDP, a significant improvement from 550.2 billion pounds, or 3.9 per cent of GDP, during the same period last year.

The country’s fiscal performance marks another major milestone, posting its highest-ever primary surplus of 130.2 billion pounds – a record three times greater than last year’s surplus, the statement added.

The significant improvement is attributed to a remarkable 38.3 per cent surge in tax revenues – the highest in two decades. This coupled with disciplined public spending and effective debt management.

In particular, better management of public debt, including spreading out interest payments throughout the fiscal year, helped mitigate costs. Additionally, the government’s strategy of reducing reliance on the unified treasury account and maintaining strict investment spending limits contributed to fiscal stability.

The government focused on reducing public investments funded by the treasury by maintaining a spending cap of 1 trillion pounds for the current fiscal year, the statement added.

Public revenues for the four-month period rose by 174.2 billion pounds, totaling 648.2 billion pounds, up from 474 billion pounds in the same period of the previous fiscal year. Tax revenues accounted for 86.5 per cent of this total, while non-tax revenues contributed 13.1 per cent.

Public spending reached 1.098 trillion pounds, compared to 1.023 trillion pounds in the previous fiscal year. The rise in spending reflects the government’s ongoing commitment to fiscal discipline, as well as its focus on human development and enhancing services for citizens.

Moreover, the Ministry of Finance emphasised its commitment to long-term fiscal discipline, noting its strategy to ensure a balanced budget and sustainable economic growth. Through an integrated approach to budgeting and a focus on enhancing public service delivery, Egypt continues to move toward stronger financial stability and a more resilient economy.

Attribution: Amwal Al Ghad Arabic