Egypt’s budget initial surplus hits EGP 193b in 8 months

Egypt’s budget has significantly improved in the past eight months, showing an initial surplus of 193 billion Egyptian pounds, a 4.5-fold increase from the previous year, the cabinet reported on Sunday, citing Finance Minister Mohamed Maait.

The public revenues rose by 34.6 per cent, driven mainly by a 38.3 per cent increase in tax revenues, totalling 892 billion pounds. Despite economic challenges, the deficit increased to 6.7 per cent of GDP due to higher interest rates, Maait added.

Meanwhile, the public expenses also rose by 52 per cent primarily due to higher interest costs. Suez Canal revenues rose in the first half of the current fiscal year, reaching 114 billion pounds in eight months, out of the 160-billion-pound target.

Maait emphasised the government’s commitment to restoring economic stability, controlling inflation, and promoting economic recovery.

He added that the proceeds from the Ras El Hekma deal will help reduce the debt-to-GDP ratio, as well as the agreement with the IMF and other partners will provide significant financial support for economic reforms.

Maait emphasised the importance of the targets set in the new budget for the fiscal year 2024/2025 in restoring stability to the Egyptian economy. These goals include achieving a primary surplus of at least 3.5 per cent, reducing the debt-to-GDP ratio to below 90 per cent and aligning spending with current fiscal year allocations, with exceptions for vital sectors such as health, education, social protection, and industry.

He clarified that capping on public investments for all state entities at one trillion pounds allows more opportunities for the private sector to boost its investments in the national economy.