Egypt’s budget deficit at $8.2 bln in Q1-FY20 – ministry

Egypt’s budget deficit stood at 131.4 billion Egyptian pounds ($8.2 billion) during the first quarter of the financial year 2019/2020, accounting for 2.1 percent of the GDP, Finance Ministry said on Thursday.

The state’s public budget achieved an initial surplus of 7.1 billion pounds from July to September for the financial year 2019/2020, without calculating loan interests, the ministry said in a statement.

The financial performance report for November also noted that the budget’s revenues recorded 173 billion pounds over three months, as tax revenues recorded 131.6 billion pounds, while non-tax revenues reached 41.4 billion pounds.

It added that receipts from income taxes rose to 38.5 billion pounds due to the increase of salary taxes that reached 12.6 billion pounds.

The report also revealed that property revenues recorded 14.4 billion pounds thanks to an increase in Suez Canal share profits, which reached 7.8 billion pounds, in addition to the increase of share profits from state-run economic entities that reached 3.4 billion pounds.

On the other hand, public expenditures recorded 303.3 billion pounds over three months, including wages and state-worker compensations that rose to 74.9 billion pounds, besides the increase of supply good subsidies that reached 12.4 billion pounds.

The ministry also revealed that spending on health insurance and pharmaceuticals witnessed an increase, recording 1.2 billion pounds, while spending on commodities and service purchases rose to 12.8 billion pounds.

Interest expenditures registered 138.5 billion pounds, spending on non-fiscal assets and investments reached 24.9 billion pounds, while spending on subsidies, grants, and social benefits recorded 34 billion pounds, the report said.

Meanhwile, the government has offered treasury bills worth 19.25 billion pounds to bridge the budget deficit.

Source: Ahram Online