Egypt’s budget deficit increased by 32.9 percent in six months

Egypt’s budget deficit has increased to reach about 6.9 percent of GDP (LE159 billion), compared to 6 percent, LE119.6 billion (1US$=7.63LE) during July-January 2013/2014, the Finance Ministry said on Monday.The monthly financial bulletin for February 2015 explained that the main reason behind the growing budget deficit was the 78.8 percent decrease in grants from Gulf countries, which reached LE7.9 billion during July-January 2014/2015, compared to about LE37.3 billion during the same period of the previous fiscal year.

Total revenues reached LE186.7 billion (8 percent of GDP) during July-January 2014/2015, declining by around LE31.3 billion compared to same period last year, due to the fall in grants and tax revenues.

Total expenditures reached LE337 billion (14.5 percent of GDP) during July-January 2014/215, increasing by around LE3.6 billion only, compared to same period last year.