Ministry of Finance has announced a significant reduction in the overall budget deficit for the period from July to November in the current fiscal year (2024/2025), showing a decrease of LE 92 billion.
The deficit now stands at LE 560.6 billion, representing 3.2 percent of the GDP, down from LE 652.7 billion, or 4.6 percent of GDP, during the same period in the previous fiscal year.
In addition to the deficit reduction, the primary surplus saw a historic surge, reaching LE 170 billion. This marks a threefold increase compared to the LE 60.8 billion recorded during the same period last year, making it the highest primary surplus ever achieved.
The primary surplus (or deficit) reflects the difference between government revenues and expenditures, excluding interest payments on debt.
The Ministry attributed this positive outcome to a remarkable 38.4 percent increase in tax revenues during the reviewed period. Additionally, better control over public spending, improved debt management by distributing interest payments across the fiscal year, and a diversification of financing sources all contributed to the budget's improved performance.
Efforts to reduce public investments funded by the treasury also played a significant role, with the government adhering to the investment ceiling of LE 1 trillion for the current fiscal year.
Egypt Today