Arab Finance: Egypt’s general budget recorded a primary surplus of EGP 130.2 billion from July to October in fiscal year (FY) 2024/2025, equivalent to 0.76% of gross domestic product (GDP), Al Arabiya Business reported, citing a report by the Ministry of Finance.

This marks a significant milestone, tripling the EGP 43.6 billion surplus achieved in the same period last year, which represented 0.31% of GDP.

The overall financial deficit also saw improvement, shrinking by EGP 97 billion to 1.3% of GDP, compared to 3.93% during the same period last year. The deficit now stands at 2.65% of GDP.

The surge in the primary surplus is attributed to a 38.3% increase in tax revenues, the highest growth rate in two decades.

This growth is credited to enhanced economic activity, the resolution of the foreign exchange crisis, and advancements in tax system automation, which expanded the tax base and streamlined collection.

Spending controls also played a role, with public expenditures reduced by 9% of GDP.

Debt management improvements, diversification of funding sources, and adherence to legal spending limits contributed to the fiscal discipline.

The budget aims to cap public debt at EGP 15.1 trillion, or 88% of GDP, and cut overall deficit to 7.3% of GDP. It also targets further increasing the primary surplus to 3.5%.

Public expenditures for the current FY are projected at EGP 3.9 trillion, while revenues are set at EGP 2.6 trillion.

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