File Photo: Egyptian Ministry of Finance headquarters in the new administrative capital. Photo courtesy of Egyptian Ministry of Finance website,
The overall budget deficit declined by 1.4 percent of GDP, reaching -3.28 percent from July to November 2024/2025, compared to -4.66 percent of GDP during the same period in 2023/2024.
In September, the Ministry of Finance announced that Egypt's budget deficit for FY2024/2025 is expected to reach EGP 1.245 trillion, accounting for 7.3 percent of the country's GDP.
The report also highlighted that the primary balance surplus significantly increased by EGP 109 billion, marking 0.6 percent of GDP in July-November of FY2024/2025.
It reached EGP 170 billion (0.99 percent of GDP) in July-November of FY2024/2025, compared to EGP 60.8 billion (0.43 percent of GDP) in the corresponding period of FY2023/2024.
Total spending increase
Total expenditures rose by EGP 124.1 billion (9.9 percent) to EGP 1,382.8 billion from July to November in FY2024/2025, compared to EGP 1,258.7 billion during the same period in FY2023/2024, the report added.
The report also indicated that public spending decreased by 0.9 percent of the GDP compared to FY2023/2024.
Taxes increase
According to the report, Egypt’s tax revenues increased by 36 percent (EGP 219.1 billion), reaching EGP 828.1 billion from July to November in FY2024/2025, compared to EGP 608.9 billion during the same period in FY2023/2024.
The ministry attributed this increase to higher tax receipts from sovereign and non-sovereign authorities.
Tax receipts from sovereign authorities increased by EGP 39.9 billion, or 30.1 percent. During July-November 2024/2025, they reached EGP 172.6 billion, up from EGP 132.7 billion in the same period in 2023/2024.
Similarly, tax receipts from non-sovereign authorities surged by around EGP 158.4 billion, or 41.3 percent, to EGP 541.7 billion, compared to EGP 383.3 billion during the same period in 2023/2024.
Meanwhile, non-tax revenues rose by EGP 20.9 billion, representing 13.7 percent of total revenues, to EGP 113.8 billion.
As the finance ministry works on improving the country's tax system, it announced its first tax incentives and facilities package.
The government also encouraged taxpayers to submit or amend their tax returns for 2020-2023 without penalties, aiming to rebuild trust within the tax community.
Increase in BoPs
The Balance of Payments (BoP) recorded an increase in the overall surplus to $9.7 billion during FY2023/2024, up from a $0.9 billion surplus in the same period of FY2022/2023, following the corrective measures implemented on 6 March 2024.
This positive performance was reflected in the capital and financial account, which saw a net inflow of $29.9 billion in FY2023/2024. This was driven by an unprecedented rise in net foreign direct investment (FDI), reaching $46.1 billion (with $40.5 billion achieved in the second half of FY2023/2024).
Additionally, portfolio investments in Egypt turned into a net inflow of $14.5 billion.
However, the current account deficit widened to $20.8 billion (up from $4.7 billion), primarily due to a 27.0 percent increase in the trade deficit and a 24.3 percent decline in Suez Canal transit revenues.
The oil trade balance shifted to a deficit of $7.6 billion, down from a surplus of $410 million. This was primarily due to the decline in the value of oil exports, which outpaced the drop in oil imports.
This was largely due to a fall in natural gas prices in FY2023/2024, compared to FY2022/2023 when they rose due to the Russia-Ukraine conflict.
Moreover, the quantities of exported oil and crude oil products decreased in FY2023/2024, compared to FY2022/2023.
The non-oil trade deficit also widened by $354.8 million to $31.9 billion (compared to $31.6 billion), mainly because the increase in non-oil imports exceeded that in non-oil exports.
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