Egypt's budget deficit soars by 6.7% during current fiscal year

CAIRO – 10 March 2024: During the first eight months of the fiscal year (FY) 2023/2024, Egypt experienced a rise in its total budget deficit, reaching 6.7 percent of the country's gross domestic product (GDP) by the end of February 2024. This marks an increase compared to the 5 percent deficit recorded in the FY 2022/2023, as reported by Finance Minister Mohamed Maait. 

 

Speaking at a press conference in Cairo on Sunday, Maait also disclosed that the primary surplus for the same period amounted to LE 193 billion, a rise from the LE 41.8 billion reported a year ago.

 

In a previous statement made in February, Maait highlighted the progress made in reducing 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. 

 

The minister further projected a decline to 5 percent by June 2027. Notably, despite global crises, Egypt achieved a primary surplus of 1.6 percent of the GDP in the FY 2022/2023, marking the first surplus in six years.

 

Furthermore, Egypt's current fiscal year aims to achieve the largest primary surplus in the country's history, targeting 2.5 percent. 

In the past seven months, the primary surplus has already reached LE 173 billion, significantly surpassing the LE 33 billion recorded during the same period in the previous fiscal year.