Egypt achieves primary surplus of EGP 822B in 11 months

Updated 6/11/2024 2:20:00 PM
Egypt achieves primary surplus of EGP 822B in 11 months

Arab Finance: Egypt has recorded a primary surplus of EGP 822 billion during the first 11 months of the current fiscal year (FY) 2023/2024, amounting to 5.87% of the gross domestic product (GDP), Minister of Finance Mohamed Maait stated on June 11th.

This is compared to a primary surplus of EGP 116 billion, or 1.15 of GDP, in the same 11 months last FY.

Moreover, the overall budget deficit narrowed to 3.6% of GDP in the 11-month period, compared to 6.1% in the corresponding period a FY ago, Maait said.

Meanwhile, the state’s public revenues surged to EGP 2.2 trillion, marking an annual increase of 73.7% , he added.

The minister also revealed that tax revenues grew 36% year-on-year (YoY) to EGP 1.4 trillion, while non-tax revenues signaled a 258% YoY hike, reaching EGP 778 billion over the July-May period on the back of the Ras El-Hekma deal.

The 11 months to May 2024 also saw a 43.2% YoY rise in public expenditures, hitting EGP 2.7 trillion, given the increase in the debt service bill.

However, investments funded by the public treasury declined by 8% YoY in the 11 months to May to around EGP 179 billion, in order to clear the way for the private sector’s involvement, the minister highlighted.

He added that the maturity of Egypt’s debt instruments is targeted to reach 3.2 years by the end of June 2024 to reduce the general budget’s financing needs.

Additionally, the government targets decreasing the debt service bill to 30% of public expenditures in the medium term, with the aim of lowering the debt to 80% in June 2027, Maait said.

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