The budget deficit for fiscal year (FY) 2014/2015 amounted to approximately 11.5% of the total GDP, said Minister of Finance Hani Kadry Dimian in a statement Monday on the general budget final account. Dimian had previously announced that it is targeting a budget deficit of 10% to 10.5% during the last FY, which was not realised in the final account. Dimian noted that the deficit has decreased; recording 11.5% compared to the 12.2% recorded over FY 2013/2014 and 13.7% in 2012/2013. "Tax revenues increased by EGP 45.6bn compared to what was achieved last FY, besides saving 9.9% of the total general expenses included in the budget law," the statement read. Dimian adopted the general budget final account for 2014/2015 on Thursday. It was sent to the cabinet hours before the end of the legal deadline on 31 October, to be given to President Abdel Fattah Al-Sisi, who currently holds the legislative authority. Since there is no parliament, the final account's adoption is among the president's authorities. However, the president may wait until the parliament is formed to propose the final account for discussion and adoption. The general budget's indications have improved over the last FY, due to fiscal and structural reforms, said Dimian. He added that these reforms raised the confidence of local and international investors in the Egyptian economy management, which has been reflected in the economy's improvement. Over the first nine months of 2015, growth rates increased to reach 4.6% compared 1.6% achieved over the same period in 2014, added Dimian. Sovereign economy ratings increased four times over seven months, followed by an increase in banking sector ratings, which significantly helped in decreasing the financing cost of the Egyptian economy. On the other hand, subsidies, grants and social benefits decreased by EGP 30bn to reach EGP 150.2bn, due to amendments to limit energy subsidies, according to the minister. Dimian noted that social programmes acquire 49.3% of the total state budget expenses, including EGP 73.9bn for the petroleum products subsidies, registering a decrease by about EGP 52.3bn, compared to the actual spending in fiscal year (FY) 2013/2014. Meanwhile, subsidies for supply goods increased by about EGP 3.9bn, to reach EGP 39.4bn, and the electricity subsidies registered at EGP 23.6bn, with an EGP 10.3bn increase from last year. "Egypt's issuing of dollar bonds of $1.5bn in the global market contributed to increasing the gap of payments in 2015/2016, as it was added to the Central Bank of Egypt's foreign currency reserves, " Dimian added. He said the Suez Canal Authority revenues increased by EGP 300m to reach EGP 34.6bn last year, and about EGP 4.9bn was collected from other economic entities, except the petroleum authority, with a threefold increase. "The final account showed an overall revenue of EGP 465.2bn, with an increase of about EGP 8.4bn, compared to last FY, while expenses reached about EGP 733.4bn with an increase of about EGP 31.9bn, compared to last FY," according to Dimian. Source: Reuters
