Egypt’s budget deficit declines by LE 97B during FY2024/2025

The Ministry of Finance reported a significant reduction in Egypt's budget deficit during the period from July to October FY 2024/2025, with a decrease of approximately LE 97 billion.

 

The deficit now stands at LE 453.2 billion, representing 2.6 percent of GDP, compared to LE 550.2 billion, or 3.9 percent of GDP, during the same period last year.

 

A remarkable improvement in the primary surplus was also noted, reaching LE 130.2 billion compared to LE 43.6 billion in the previous fiscal year—a record-breaking figure that triples last year’s performance during the same timeframe.

 

This progress is attributed to a 28.3 percent surge in tax revenues, the highest growth rate in two decades, coupled with enhanced public spending controls.

 

Improved debt management played a key role, with measures such as strategically distributing interest payments throughout the fiscal year and diversifying funding sources.

 

Reliance on the unified treasury account has been minimized, while adherence to legal spending limits was maintained. Public investment funded by the treasury was also reduced, with a spending cap of LE 1 trillion set for the fiscal year.

 

Total public revenues grew by LE 174.2 billion, reaching LE 648.2 billion during the four-month period, up from LE 474 billion in the same period last year.

 

Tax revenues accounted for 86.5 percent of the total, while non-tax revenues contributed 13.1 percent. Public expenditures rose by LE 74.7 billion to LE 1.098 trillion, compared to LE 1.023 trillion in the previous fiscal year.

 

The government continues to focus on fiscal discipline, reallocating expenditures to prioritize human development and enhance public services while ensuring financial sustainability.