Egypt's budget deficit records LE 134.9B in Q1 of 20/21

CAIRO – 8 December 2020: Egypt’s budget deficit recorded LE 134.9 billion during the first quarter of in the fiscal year of 2020/2021, representing -2.1% of gross domestic product (GDP), compared to LE 131.4 billion, -2.3% of GDP, during the same period of the prior year, according to Ministry of Finance.

The ministry added in a report issued Monday that total revenues rose by 18.4 percent to record LE 204.7 billion in July – September period of 2020/2021, compared to LE 172.9 billion during the same period of the previous fiscal year.

It indicated that tax revenues increased by 14.1 percent, recording LE 150 billion, compared to LE 131.5 billion during the same period of the previous year, while non-tax revenues rose by LE 13.2 billion, to LE 54.6 billion within  the three months of 2020/2021, compared to LE 14.4 billion.

The ministry added that the total expenditures rose by 11 percent, to reach LE 336.8 billion within the period of 2020/2021, compared to LE 303.3 billion during the same period of the previous fiscal year.

It pointed out that spending on wages and compensation for state employees increased by 5.1 percent to about LE 78.7 billion, compared to LE 74.9 billion, and an increase in spending on the treasury's contribution to pension funds by LE 22.5 billion to reach LE 28.5 billion, in light of the implementation of the new Social Insurance and Pensions Law. No. 148 of 2019.

Spending on export subsidies increased to LE 1.7 billion, while spending on health insurance and medicine subsidies increased by 2.3 percent to LE 1.2 billion, and spending on subsidies, grants and social benefits climbed to LE 54.7 billion, compared to LE 34 billion, according to the report.

It pointed out that LE 12.4 billion was allocated to support food commodities during the 2020/2021 period, and spending on the purchase of non-financial assets (investments) increased by 60.4 percent to record LE 40 billion, which reflects the interest in developing infrastructure and improving services provided to citizens.

The report stated that spending on purchasing goods and services decreased to reach LE 10.7 billion, compared to LE 12.8 billion, while interest expenditures fell to LE 135 billion, compared to LE 138.5 billion.