13 June 2018

Egypt: Finance Minister - Egypt Achieves Initial Surplus of Egp 1.9 Bln for 1st Time in 10 Years

Wednesday 13 June 2018 - 01:26 PM

Finance Minister: Egypt achieves initial surplus of EGP 1.9 bln for 1st time in 10 years

Finance Minister Amr el Garhi announced that the general budget achieved an initial surplus for the first time in more than 10 years, amounting to EGP 1.9 billion, compared to a deficit of EGP 47 billion during the same period in the previous fiscal year.

He stressed in statements on Tuesday12/6/2018 that the actual results of the general budget for the period July-May 2017/2018 confirm a significant and marked improvement in financial performance and in financial indicators in general attributing this to the government's implementation of its comprehensive economic reform program and improved economic performance indicators.

According to him, these positive developments reflect the efforts of the Finance Ministry to achieve fiscal control of the public budget through the continued implementation of targeted financial and economic reforms, the start of economic recovery and increasing investor confidence.

The minister pointed out that the July - May 2017/2018 period witnessed a marked improvement in the control of the overall budget deficit to reach 7.8% of GDP compared to 9.3% during the same period of the previous fiscal, and compared to an average of 10.6% during the last three years.

He said that the financial results for the July - May period confirm the ability of the Finance Ministry and the Egyptian government to achieve the set financial targets for the year 2017/2018, which include achieving an initial surplus worth 0.1% of GDP for the first time in decades and an overall deficit amounting to 9.8% of GDP.

The positive development of the budget and deficit indicators reflect a significant increase in public revenues during the July - May 2017/2018 period to achieve 36%, exceeding the annual growth of general expenses which has been estimated at 24%, Garhi said.

He also said that the July - May 2017/2018 period has witnessed a significant improvement in tax revenues which grew by about 45% compared to an average growth of 20% in the previous three years.

As far as expenditures are concerned, Garhi noted that wages rose by 11.5% as a result of the regular and extraordinary bonus announced at the beginning of the fiscal year, for the benefit of about six million government employees.

Government investments increased by 23% to reach EGP 75 billion, of which EGP 57 billion is in deficit financing, he said, adding that this reflects the interest of the Finance Ministry to provide the necessary financial allocations to improve the infrastructure and upgrade services provided to citizens nationwide.

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