Egypt reduces total deficit to 3.6% in period from July to May 2024

CAIRO - 11 June 2024: In the period from July to May 2024, Egypt achieved a primary surplus of LE 822 billion, equivalent to 5.87 percent of the gross domestic product (GDP), Minister of Finance, Mohamed Maait said. 

 

This represents an increase compared to the previous fiscal year, where the surplus was only LE 116 billion, accounting for 1.15 percent of the GDP. 

 

Moreover, Egypt reduced the total deficit to 3.6 percent in the mentioned period, instead of 6.1 percent in the previous fiscal year, the minister of finance indicated.

 

The Minister highlighted the growth in general revenues over the past 11 months, reaching LE 2.2 trillion, with a growth rate of 73.7 percent. 

 

This increase was mainly driven by the digitization of processes, expanding the tax base, and enhancing tax administration efficiency. 

 

Tax revenues alone rose to LE 1.4 trillion, representing a growth rate of 36 percent, Maait added.

 

Non-tax revenues also experienced growth, totaling LE 778 billion, reflecting a growth rate of 258 percent due to the Ras El Hekma deal.

 

On the expenditure side, general expenditures during the mentioned period rose to LE 2.7 trillion, with a growth rate of 43.2 percent.

 

 Despite the challenges posed by unprecedented global crises, Egypt allocated LE 226 billion to support the education sector, marking a growth rate of 20 percent. 

 

The health sector was also prioritized with an increase in financing by LE 156 billion, indicating a growth rate of 31.9 percent.

 

To alleviate the inflationary burdens for the most vulnerable segments of society, actual expenditure on support, grants, and social benefits reached LE 467 billion, with a growth rate of 26 percent. 

 

Wages expenditure also increased to LE 467 billion, reflecting a growth rate of 27 percent, minister Maait confirmed.

 

Furthermore, the government spent LE 119 billion on subsidies for commodities, while the Takaful and Karama program received LE 32 billion, experiencing an annual growth rate of 52 percent.

 

 Additionally, LE 185 billion of the insurance and pension fund's dues were paid to the state treasury.

 

In terms of investments, the volume of investments funded by the state treasury decreased by 8 percent during the period from July to May 2024, amounting to approximately LE 179 billion. 

 

This reduction aimed to maximize the involvement of the private sector in driving investments.

 

Minister Maait emphasized the Egyptian government's medium-term goal of reducing the debt service bill to 30 percent of general expenditures.

 

 This strategic objective aims to decrease the debt burden and reach a debt level of 80 percent by June 2027.