Egypt budget deficit records 5% of GDP in H1 2023/24

Ahram Online , Thursday 18 Jan 2024

Egypt’s budget deficit recorded 4.95 percent of GDP during the first half (H1) of FY 2023/2024, July-December 2023, said Minister of Finance Mohamed Maait.

A file photo of Egypt s finance minister Mohamed Maait
A file photo of Egypt s finance minister Mohamed Maait


Over H1 of FY2022/23 (July-December 2022), Egypt's budget deficit surged to over EGP 367 billion, recording four percent of GDP.

Maait added during a cabinet meeting on Thursday that Egypt achieved a primary budget surplus of EGP 150 billion in the first half of FY2023/2024, up from EGP 25 billion in the same period in the previous fiscal year.

A country's primary surplus refers to the government spending less current income from taxes and excludes interest paid on government debt.

Maait said that revenue surged by 41.6 percent year-on-year (YoY) from July to December, after the tax revenue had jumped by 43.4 percent.

Total expenditure rose by 56 percent YoY in the same period, he added.

Egypt's budget deficit accounted for 6.1 percent of GDP in FY 2022/2023. However, the country achieved a $882 million surplus in its balance of payment (BoP) in the same year.

The government increased its budget deficit estimate to 6.9 percent of GDP for FY 2023/2024, which started on 1 July amid the global economic crisis.

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