According to the Ministry, the overall deficit stood at EGP 879.3 billion, equivalent to 5.1% of GDP, compared to EGP 898 billion, or 6.5% of GDP, during the same period last year.
The Ministry of Finance announced a reduction in Egypt’s overall budget deficit during the first eight months of FY2024/2025, covering the period from July to February.
According to the Ministry, the overall deficit stood at EGP 879.3 billion, equivalent to 5.1% of GDP, compared to EGP 898 billion, or 6.5% of GDP, during the same period last year.
In a report released today, the Ministry also noted a significant increase in the primary surplus, which rose by approximately EGP 137 billion to reach EGP 330 billion, equivalent to 1.9% of GDP, up from EGP 193 billion, or 1.4% of GDP, during the same period of the previous fiscal year.
The improvement was attributed mainly to a notable 38.4% rise in tax revenues, driven by comprehensive growth across all types of taxes, reflecting the recovery in economic activity, the resolution of the foreign currency shortage, and the impact of the digitalization of tax systems, which enhanced tax administration and expanded the tax base.
The Ministry further highlighted that public spending was effectively controlled during the period, supported by better debt management strategies that distributed interest payments more evenly throughout the fiscal year.
Additionally, financing sources were diversified by reducing reliance on the single treasury account and adhering to legal limits, alongside efforts to curb government-funded public investments by committing to an investment spending cap of EGP 1 trillion for the current fiscal year.
The report also revealed that total public revenues grew by 32.8%, or EGP 356.4 billion, over the eight-month period, reaching EGP 1.442 trillion, compared to EGP 1.086 trillion in the same period of the previous fiscal year. Of this, tax revenues contributed approximately 85.6%, while non-tax revenues accounted for about 14.4%.
Meanwhile, total public expenditures rose by EGP 314.9 billion, an increase of 15.8%, reaching EGP 2.308 trillion during the eight months, compared to EGP 1.993 trillion during the same period last year.
