Egypt public expenditures decline by 5.9% in July, August

These efforts include strategies to distribute interest payment burdens more evenly throughout the fiscal year and diversify funding sources.

The ministry has also focused on reducing reliance on the unified treasury account and adhering to established legal ceilings for spending.

Additionally, the government is committed to limiting public investments financed by the treasury to an investment spending cap of EGP 1 trillion for FY2024/2025.

The report also showed a reduction in the budget deficit for July and August to EGP 263.1 billion, equivalent to 1.54 percent of the GDP. This represents a decrease from EGP 383.1 billion, or 2.74 percent of the GDP, during July and August of FY2023/2024.

Moreover, it indicated a notable increase in the primary surplus of the state budget, reaching EGP 49.2 billion, which represents 0.29 percent of GDP, compared to EGP 8.7 billion, or 0.06 percent of GDP, during the corresponding period of FY2023/2024.

On Monday, Minister of Finance Ahmed Kouchouk announced a comprehensive programme for launching new initiatives and incentives to bolster green activities and export-oriented industries. This move is designed to stimulate the Egyptian economy.

While speaking at the Portfolio Egypt 2024 conference, Kouchouk highlighted the government's commitment to improving several key areas to attract investment, emphasizing the importance of enabling various industries and agricultural sectors to access international markets.

In addition, Kouchouk revealed that a ceiling has been established for the government’s debt in the public budget, which cannot be exceeded without prior approval from the parliament. This measure is part of the government's strategy to maintain fiscal discipline while pursuing economic growth.