Egypt's general state budget shows significant growth with an 18.5% increase in revenue and a 21.9% surge in tax revenues, bolstering fiscal stability and debt reduction efforts.
Egypt's state budget reports a remarkable rise in total revenue, reaching 925.1 billion EGP, driven by a substantial increase in tax and non-tax revenues — Photo illustrated by Business Today Egypt
Egypt's Ministry of Finance has released its monthly report, revealing a rise in the total revenue of the general state budget to EGP 925.1 billion from July to March in the fiscal year 2022/2023. This marks a growth of 18.5% or EGP 144.1 billion compared to the same period last year.
Tax revenues accounted for approximately 80.1% of the total revenue, while non-tax revenues constituted about 19.9%.
According to the report, tax revenues reached EGP 740.7 billion during the period, reflecting a 21.9% increase of EGP 133 billion compared to the previous fiscal year. Non-tax revenues amounted to EGP 184.4 billion, showing a rise of EGP 11 billion.
During the period from July to March in the fiscal year 2022/2023, the general state budget achieved a preliminary surplus of EGP 50.1 billion, equivalent to 0.51% of the GDP.
This represents an increase from the 0.40% surplus recorded in the same period of the previous fiscal year. However, the general state budget deficit stood at 5.5% of the GDP during the first nine months of the current fiscal year.
The report attributes the increase in the preliminary surplus to the rise in revenues by 18.5% and the increase in expenditures by 24.6% from July to March in the fiscal year 2022/2023.
The government has demonstrated commitment to allocating funds to the healthcare and education sectors, treasury-funded investments, wage increases, and meeting the requirements of social protection programs.
The Ministry of Finance had previously anticipated that the achieved results of the general state budget in the first half of the current fiscal year 2022/2023 would help reduce the general budget deficit and public debt.
It is estimated that an initial surplus of around 1.6% of GDP will be achieved by the end of this fiscal year, while the projected overall fiscal deficit will be approximately 6.8% in the same year. Furthermore, the budgetary debt is expected to decrease to less than 80% of GDP by June 2027.
The government's success in transforming the longstanding budget deficit into an initial surplus of 1.3% in June 2022, marking the fifth consecutive year of surplus, sets a target of 1.4% for the current fiscal year. Additionally, the country recorded its highest growth rate since 2008 at 6.6% and reduced the budget deficit-to-GDP ratio to 6.1%.
In recent years, Egypt has demonstrated remarkable progress in its economic and financial stability. The government's ongoing efforts to implement comprehensive reforms, improve fiscal discipline, attract foreign investment, and diversify the economy have yielded positive outcomes.
Key sectors, including tourism, energy, and agriculture, have experienced significant growth, contributing to job creation and enhanced revenue generation. These achievements have positioned Egypt as an attractive investment destination and fostered investor confidence in the country's economic prospects.
