Budget deficit in Egypt amounts to 2.6% in the current fiscal year

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Egypt announced that the total deficit in its budget amounted to 2.6 per cent of GDP in the first four months of the current fiscal year. Egyptian Finance Minister Mohamed Maait said that the primary budget surplus decreased to EGP 5.5 billion ($352 million) from July 1 to October 30, from EGP 12 billion ($767.5 million) in the corresponding period of 2019.

During a press conference published by local media on Monday, the finance minister attributed this decline in the primary surplus to the injection of large investments to create job opportunities, enhance social protection and increase export subsidies. Maait added that the total deficit (including debt interest) amounted to 2.6 per cent of GDP during the first four months of the fiscal year, down from 3.1 per cent a year ago. Earlier Monday, the Egyptian presidency said that the primary budget surplus in the first quarter of the current fiscal year 2020-2021 until the end of September amounted to EGP 200 million, without mentioning the total deficit.

The overall deficit in Egypt’s budget was 7.8 per cent of GDP in the 2019-2020 fiscal year, compared to 8.2 per cent in the 2018-2019 fiscal year. Egypt had expected a deficit of 7.2 per cent in the fiscal year ending on June 30, before the Egyptian economy was affected by the corona pandemic. Maait indicated that public revenues rose by 16 per cent in the first four months of the fiscal year, offset by a seven per cent increase in expenditures.