Egypt recorded a primary budget surplus of EGP 164.3 billion ($5.3 billion), around 1.7% of the country’s gross domestic product (GDP), exceeding Minister of Finance Mohamed Maait’s previous expectations of 1.5% of GDP announced in June.

The surplus, according to the initial indicators of the financial performance for FY 2022/2023, was achieved despite an annual increase in public expenditures by 16.3%, which hit EGP 2.1 trillion, Maait explained. He also noted an 11.5% increase in public revenues to EGP 1.501 trillion in a statement released on July 14th.

The ministry predicts that the primary surplus will see another positive jump in FY 2023/2024 to reach 2.5% of the GDP.

Maait also announced that the budget deficit climbed to 6.2% of Egypt’s GDP during the previous fiscal year from 6.1% in FY 2021/2022.

The finance minister also confirmed that the preliminary performance figures of the previous fiscal year reveal that the government's financial targets have been achieved.

Egypt's debt-to-GDP ratio is expected to reach 98% in 2022/2023, accelerated by the Egyptian pound’s devaluation, Maait added. The debt-to-GDP ratio will begin to decline as of the current FY 2023/2024 to reach between 75-79% of GDP in the next four years.

Last week, President Abdel Fattah El Sisi signed off on Law no. 91 of 2023, which states that the new state budget spending for the next fiscal year is estimated at EGP 4.349 trillion. According to the official gazette, which published the law, budget revenues from lending and sales of assets are estimated at EGP 2.208 trillion.

Minister of Planning and Economic Development Hala El Said previously revealed that Egypt targets achieving economic growth of around 4.1% to 4.2% in 2023.

According to data by the Central Bank of Egypt, Egypt’s foreign debt rose to $162.9 billion during the first half of FY 2022/2023, up from $155.7 billion at the end of the previous FY.