Egypt Sees Budget Deficit Soar To 6.7% During Fiscal Year 2023/2024
Egypt has observed a notable uptick in its total budget deficit during the first eight months of the fiscal year (FY) 2023/2024, reaching 6.7 percent of its gross domestic product (GDP) by the end of February 2024. This figure stands in stark contrast to the 5 percent deficit recorded in the FY 2022/2023, as Finance Minister Mohamed Maait reported during a press conference held in Cairo on Sunday.
Additionally, Maait revealed that the primary surplus for the same timeframe amounted to LE 193 billion, marking a significant increase from the LE 41.8 billion noted a year prior.
In a previous statement from February, Maait underscored the progress made in curtailing Egypt's total budget deficit from 12 percent during the FY 2013/2014 to 6 percent of the GDP by the end of June 2023. He further anticipated a reduction to 5 percent by June 2027. It is noteworthy that Egypt managed to secure a primary surplus of 1.6 percent of the GDP in the FY 2022/2023, representing the first surplus in six years, even amidst global crises.
Looking ahead, Egypt's current fiscal year is poised to record the largest primary surplus in the nation's history, with a target set at 2.5 percent. Remarkably, the primary surplus over the past seven months has already reached LE 173 billion, far exceeding the LE 33 billion recorded during the corresponding period in the previous fiscal year.
This financial trajectory underscores Egypt's determined efforts to enhance its fiscal health, despite the challenges posed by global economic conditions. The strategic measures and fiscal discipline implemented by the Egyptian government appear to be yielding positive outcomes, as evidenced by the significant improvement in the primary surplus and the gradual reduction of the total budget deficit.
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