Egypt achieved LE 164.3B primary budget surplus, says finance minister

Cairo – July 17 2023: Egypt achieved a primary budget surplus of LE 164.3 billion ($5.3 billion), equivalent to approximately 1.7 percent of the country's gross domestic product (GDP) for the fiscal year 2022/2023, surpassing Minister of Finance Mohamed Maait's earlier prediction of 1.5 percent.

Despite a 16.3 percent yearly increase in public expenditures to record LE 2.1 trillion, Maait explained that the surplus was achieved based on preliminary indicators of financial performance for FY 2022/2023. Furthermore, he noted on a statement released on July 14th indicating an 11.5 percent surge in public revenues, reaching LE 1.501 trillion.

The Ministry of Finance predicts a further positive surge in the primary surplus during FY2023/2024, estimating it to reach 2.5 percent of the GDP.

Maait also disclosed an increase in Egypt's budget deficit from 6.1 percent in FY2021/2022 to 6.2 percent of the GDP during the previous fiscal year.

Moreover, the finance minister confirmed that the government has achieved its financial targets based on preliminary figures.

Citing the devaluation of the Egyptian pound, Maait added that Egypt's debt-to-GDP ratio is projected to climb to 98 percent in FY2022/2023. However, this ratio is expected to decrease in FY2023/2024, reaching a range of 75-79 percent of the GDP over the next four years.

Recently, President Abdel Fattah El Sisi approved Law no. 91 of 2023, which outlines the estimated state budget spending for the forthcoming fiscal year at LE 4.349 trillion. The official gazette, which published the law, disclosed that budget revenues from lending and asset sales are projected at LE 2.208 trillion.

Minister of Planning and Economic Development Hala El Said previously revealed Egypt's aim to achieve economic growth between 4.1 percent and 4.2 percent in 2023.

Data from the Central Bank of Egypt indicates that Egypt's foreign debt escalated to $162.9 billion during the first half of FY 2022/2023, compared to $155.7 billion at the end of the previous fiscal year.