Egypt's budget deficit decreases to 6% of GDP by June 2023

CAIRO – 9 May 2024:  Egypt accomplished a primary surplus of 1.6 percent of its gross domestic product (GDP) in the fiscal year 2022/2023, according to a statement by Minister of Finance, Mohamed Maait.

 

 This surplus was utilized to partially cover interest payments on the public debt, resulting in a decrease in the country's overall deficit to 6 percent of the GDP by June 2023.

 

Furthermore, Egypt successfully reduced its debt from 103 percent in June 2016 to 95.8 percent by June 2023.

 

Minister Maait highlighted that the budget for FY 2022/2023 witnessed a notable increase in public spending on social programs, reaching LE 2.2 trillion, marking a growth of 19.3 percent. 

 

Public expenditure on wages and workers' compensation also experienced growth, amounting to LE 412.5 billion in FY 2022/2023 compared to LE 358.7 billion in FY 2021/2022, reflecting a 15 percent increase.

 

The minister further mentioned a rise in spending on support programs, which reached LE 275.8 billion in FY 2022/2023, showing a growth rate of 50.9 percent compared to LE 182.8 billion in FY 2021/2022.

 

During the fiscal year 2021/2022, Egypt's actual spending on the social protection sector increased by 34 percent, with the state's public treasury committing to paying LE 191 billion as the annual premium to the National Social Insurance Authority.

 

In terms of the health sector, actual expenditure in the last fiscal year amounted to LE 147.2 billion, exhibiting an 8.2 percent growth compared to LE 136 billion in FY 2021/2022.

 

 Additionally, Egypt's spending on the education sector rose by 8.9 percent, reaching LE 212.2 billion compared to LE 194.8 billion.

 

Minister Maait emphasized that public revenues witnessed significant growth across various sectors. Tax revenues, for instance, experienced an increase of 26.9 percent compared to FY 2021/2022, surpassing the target for FY 2022/2023 by 107.6 percent.

 

Moreover, the final accounts of economic bodies indicated improvement, with their annual net profits increasing by 50.3 percent during FY 2022/2023.