This is less than the state budget’s target of 6.7% despite the growing costs of rising food and energy prices during the 2nd half of the year
Egypt’s budget deficit narrowed to 6.1% in fiscal year 2021/2022, which closed June 30, down from the previous FY’s 7.4%, revealed the state yesterday.
This is less than the state budget’s target of 6.7% despite the growing costs of rising food and energy prices during the 2nd half of the year.
During yesterday’s meeting with the Ministerial Economic Group to go over financial performance indicators for FY 2021/2022, president Abdel-Fattah El-Sisi directed the Ministry of Finance to target reducing the debt-to-GDP ratio, as well as rationalizing government spending in the coming period.
The state saw the general budget record a primary surplus for the fourth year in a row, reaching EGP 97 billion in FY 2021/2022, falling to 1.3% of Egypt’s gross domestic product (GDP) compared to 1.5% in FY 2020/2021. The government had initially targeted a 1.5% surplus last year.
The primary surplus is the general budget surplus after excluding the debt service item.
Debt servicing costs declined to 32.8% during FY 2021/2022, compared to 35.8% in FY 2020/2021. A debt-to-GDP figure for the full year wasn’t provided.
The state budget saw revenues climb by 20%, while expenditures rose by 15%, according to financial performance indicators of the state budget.
During yesterday’s meeting with the Ministerial Economic Group to go over financial performance indicators for FY 2021/2022, president Abdel-Fattah El-Sisi directed the Ministry of Finance to target reducing the debt-to-GDP ratio, as well as rationalizing government spending in the coming period.
The president is set to ratify the FY 2022/2023 budget, which has already been approved by the House of Representatives in late June. The new budget targets EGP 2.071 trillion in expenditures and EGP 1.518 trillion in revenues, according to Finance Minister Mohamed Maait.
“Fuel subsidies will be increased from EGP 18.4 billion to EGP 28.9 billion, while food subsidies — which cover bread and basic commodities for 71 million citizens holding ration cards — will climb from EGP 87.2 billion to EGP 90 billion,” he added.
