Egypt targets primary surplus of 3.5% in FY2024/25

Egypt is targeting a primary surplus of 3.5 per cent in its budget for the financial year 2024/2025, which begins next July, Minister of Finance Mohamed Maait announced on Tuesday.

During a meeting with key media figures in the country, Minister Maait said the government also aims to reduce total budget deficit to 6 percent of gross domestic product (GDP) in the medium-term.

The minister outlined a strategy to reduce public debt sustainably by using the surplus and half of offering revenues. The goal is to lower the debt-to-GDP ratio to reach below 80 per cent in three years.

He further mentioned that the country’s new budget for 2024/2025 includes total expenditure of 3.9 trillion Egyptian pounds, with expected revenue of 2.6 trillion pounds.

Maait stated that the goal is to generate 2 trillion pounds in tax revenues without imposing additional burdens on citizens or investors. This will be accomplished by formalising the informal economy and improving existing tax systems.

He emphasised that the budget focuses on promoting sector participation in public investments to boost economic growth. A cap of 1 trillion pounds has been set for public investments by all state entities in the 2024/2025, covering projects for public budget entities, state-owned companies, and other government entities.