Egypt's total deficit hits LE389.1B in 11 months of 2019/2020

CAIRO – 20 July 2020: Egypt’s total deficit during July to May of 2019/2020 recorded LE 389.1 billion, compared to LE 327.66 billion during the same period of 2018/2019, according to Ministry of Finance data.

The Finance Ministry pointed out in its monthly report issued Monday, that the total deficit during the 11 months ended in May represented 6.5 percent of GDP compared to about 6.2 percent of GDP during the same period in the previous year.

The ministry referred to achieving an initial surplus of LE 51.6 billion during the 11 months, compared to LE 58.2 billion during the same period in the previous year.

It said that total revenue increased by 2.2 percent, to record LE 787 billion, up from LE 770 billion during the same period in 2018/2019.

“The tax revenues decreased by 2.4 percent to achieve LE 601.4 billion, compared to LE 616.3 billion, while non-tax revenues increased by about LE 31.7 billion to achieve LE 185.4 billion during the studied month, compared to LE 153.7 billion,” it added.

The ministry explained that the total expenses increased by 6.8 percent to reach LE 1.1 trillion in 11 months, compared to LE 1.096 trillion during the same period in the previous fiscal year.

The report pointed to the increase in wages and compensation expenses for workers in the state to reach about LE 264 billion, up from LE 243.3 billion, increase in spending on purchasing goods and services to achieve LE 55 billion pounds, from LE 53 billion, and high spending on purchasing non-financial assets (investments) to record LE 143.5 billion, from LE 111.2 billion.

It also noted that interest expenses rose to LE 440.6 billion, compared to LE 385.8 billion, while spending on subsidies, grants and social benefits declined to LE 195.8 billion, from LE 237 billion.