Egypt’s Finance Ministry stated in a press release on Friday that the preliminary final account of the budget for the fiscal year 2022-2023 shows a total deficit of 6.2% of the gross domestic product (GDP), slightly higher than the previous fiscal year’s 6.1%.
According to the statement, published by the Egyptian Cabinet on its Facebook page, the budget achieved an initial surplus of 1.7% of the GDP, despite an increase in expenses to 2.13 trillion Egyptian pounds ($69 billion), with a growth rate of 16.3%.
The initial surplus excludes debt interest.
The ministry also stated that the debt ratio was affected by exchange rate fluctuations and expected to be around 98% of the GDP, gradually decreasing over the next four years of the current fiscal year, ranging from 75% to 79% of the GDP.
The statement clarified that Egypt increased the support for subsidized commodities to 130 billion Egyptian pounds ($4.23 billion) in the fiscal year ending in June.
General revenues increased by 11.5 % to 1.501 trillion Egyptian pounds ($48.9 billion), while tax revenues increased by approximately 23.1%, according to a Finance Ministry statement.
The fiscal year in Egypt starts on July 1 and ends on June 30 of each year.
In a presser on Friday, Finance Minister Mohamed Maait noted that “without the rise in interest rates, exchange rate fluctuations, and inflationary effects, the rates would have been much better.”
He emphasized that “maintaining the deficit rate at 6.2% , considering the international variables and the urgent and continuous interventions to contain the negative repercussions and expand social protection networks, indicates the ability of the Egyptian state to effectively manage public finances.”
According to Maait, this is achieved through leveraging modern technology to enhance the governance of revenue and expenditure systems and directing financial allocations towards specified paths in line with national priorities, as reflected in the government's action plan, consistent with Egypt’s Vision 2030.
