Egypt had previously expected the achieved results for the state budget during the first half of the year to help reduce the general budget deficit.
Egyptian government successfully transforms primary budget deficit into a surplus - File Photo
Egypt's Ministry of Finance has announced a surplus of EGP 41.8 billion for the first eight months of the 2022/2023 fiscal year, equivalent to 0.43% of the GDP, compared to a surplus of 0.27% during the same period last fiscal year.
Meanwhile, the country's budget deficit stood at 5.1% of the gross domestic product during the first eight months of the current fiscal year. The monthly report attributes the increase in the surplus to an 18.1% rise in revenue and a 24.6% increase in expenses, due to higher allocations for the health and education sectors, investments financed by the treasury, salary hikes, and social protection programs.
The Ministry of Finance had previously expected the achieved results for the state budget during the first half of the current fiscal year to help reduce the general budget deficit and public debt, and achieve a primary surplus by the end of the fiscal year, estimated at around 1.6% of the GDP. The total estimated deficit for the same year is about 6.8%, and the budgetary devices' debt is expected to decrease to less than 80% of the GDP by June 2027.
The government has succeeded in transforming the primary deficit of the budget, which lasted for more than 21 consecutive years, into a primary surplus of 1.3% in June 2022, and it aims for 1.4% during the current fiscal year. The government also recorded the highest growth rate since 2008, with a rate of 6.6%, and decreased the budget deficit to GDP ratio to 6.1%.
This achievement comes as a result of the government's adoption of several reform measures over the past five years to put the Egyptian economy on the right track and improve the efficiency of services provided to citizens.
The Ministry of Finance has continued to achieve financial control targets, sustain general financial indicators, rationalize consumption, and provide funding sources without negatively affecting the economy's growth.
The Egyptian economy has been experiencing a growth trend in recent years. The country's GDP grew by 3.6% in the 2019/2020 fiscal year and 3.3% in the 2020/2021 fiscal year.
The government has launched several initiatives to attract investments and create job opportunities, including the establishment of new cities and the development of the Suez Canal Economic Zone. These initiatives aim to attract local and foreign investments, boost the country's export capabilities, and enhance its competitiveness.
