Egypt's Ministry of Finance announced on Tuesday a remarkable improvement in the nation's fiscal performance during the first five months of the 2024/2025 financial year, reporting a record primary surplus and a significant reduction in the overall budget deficit. Between July and November, the budget deficit dropped by 92 billion Egyptian pounds compared to the same period last year, reaching 560.6 billion pounds —equivalent to 3.2 per cent of GDP. This marks a notable improvement from the previous year's 4.6 per cent of GDP, which amounted to 652.7 billion pounds. The primary surplus surged to 170 billion pounds, more than tripling the 60.8 billion pound recorded during the same period last year. This achievement represents the highest primary surplus in Egypt's fiscal history. The ministry attributed these gains to a robust 38.4 per cent increase in tax revenues and stringent public spending controls. Enhanced debt management strategies also played a key role, including the distribution of interest payments throughout the fiscal year and efforts to diversify funding sources. To sustain fiscal discipline, the government reduced its reliance on the unified treasury account and adhered to strict legal spending limits. Public investments funded by the treasury were capped at 1 trillion pounds for the current fiscal year, aligning with the nation's broader economic goals. Attribution: Amwal Al Ghad Arabic
