Egypt’s primary surplus reaches EGP 822b in 11m

Egypt’s general budget has surpassed targets over 11 months, defying global challenges and corrective economic measures.

Primary surplus reached 822 billion Egyptian pounds (5.87 per cent GDP), up from 1.15 per cent. Total deficit dropped to 3.6 per cent of GDP, down from 6.1 per cent, despite sharp inflation, high interest rates, devaluation of the currency, increased subsidy allocations and debt service.

Public revenues soared to 2.2 trillion pounds (73.7 per cent growth), compared to the same period a year erlier. Meanwhile, tax revenues reached 1.4 trillion pounds (36 per cent growth) as a result of digitisation and expanded tax base efforts, and increased taxation efficiency.

Non-tax revenues rose to 778 billion pounds (258 per cent increase), driven by the Ras El Hekma deal.

In contrast, expenditure surged by 43.2% to 2.7 trillion pounds. This increase was driven primarily by factors such as higher debt servicing costs, rising interest rates, and expanded spending on social programs, wages, healthcare, and education.

State-funded investments dropped by 8 per cent, in an effort to increase give private sector partnership.

Attribution: Egyptian cabinet.