Egypt Watch

EGP 425 billion deficit in Egypt’s new budget

The budget for the new fiscal year 2020-2021 recorded an initial deficit of EGP 425 billion ($27 billion) as the initial estimate of revenue reached EGP 1.3 trillion ($82.5 billion) compared to EGP 1.7 trillion ($108 billion) allocated for expenses, of which EGP 566 billion ($36 billion) will be paid for debts and their benefits. According to the financial statement of the budget, taxes increased from EGP 857 billion ($54.4 billion) in the fiscal year 2019-2020 to EGP 965 billion ($61.2 billion) in the 2020-2021 budget, an increase of EGP 108 billion ($6.9 billion), in addition to EGP 322 billion ($20.4 billion) for non-tax revenues, and EGP 2.2 billion ($139.7 million) for grants. The other expenses item increased from EGP 90.4 billion ($5.7 billion) to EGP 105 billion ($6.7 billion), which is allocated to the budgets of defence and national security, the Ministry of Foreign Affairs, the Central Auditing Agency, parliament, as well as international contributions, compensation, and fines.

Egypt’s external debt jumped, according to central bank data, to $109.36 billion, and domestic debt increased by eight per cent to EGP 4.2 trillion ($265.4 billion).