Total tax revenues for the financial year 2016/2017 increased by 31.8 percent 464.4 billion Egyptian pounds, from 352.3 billion pounds the year before, the county's Finance Minister Amr El-Garhy announced at a press conference on Tuesday, according to Al-Ahram Arabic website. The increase in tax collections was mainly driven by the value-added tax, which was set at 13 percent last fiscal year. Collections exceeded the targeted revenues by 8 percent, Deputy Minister of Finance Amr El-Monayer was quoted as saying by Egyptian newspaper Al-Mal. Non-tax revenues increased by 30.6 percent year-on-year to 177.1 billion pounds, compared to 135.6 billion pounds, El-Garhy said. Investments registered 109.1 billion pounds in the last financial year, a 57.6 percent increase compared to 69.2 billion pounds in financial year 2015/2016. Total expenditures recorded 1.32 trillion pounds, compared to 817.8 billion pounds the year before, a 26.2 percent increase. Total revenues recorded 659 billion pounds in fiscal year 2016/2017 from 491.5 billion last year, a 34.1 percent year-on-year increase. The ministry collected 40 percent of its revenues electronically, and targets an increase to 80 percent next fiscal year, Deputy Minister of Finance Mohamed Maait noted. The ministry is drafting a law on tax procedures, El-Garhy said. It will then be referred to the Cabinet, Al-Masry Al-Youm reported. The budget's primary deficit, which is the deficit without accounting for debt services, was the lowest in eight years in fiscal year 2016/17, recording 63 billion pounds, compared to 95.9 billion pounds the previous year, Deputy Minister of Finance Ahmed Kouchouk said. It represents 1.8 percent of GDP. Debt services reached EGP 316.6 billion, compared to 243.6 billion pounds the year before. The interest rate hike is expected to lead to an increase in debt services to 410 billion pounds this fiscal year, compared to the projected 380 billion pounds. The rate hike increased by 700 bps since 3 November. The total deficit increased to 379.6 billion pounds, up from 339.5 billion pounds the previous year. The total deficit to GDP represented 10.9 percent of GDP in fiscal year 2016/17, down from 12.5 percent in 2015/16. The government is funding the budget gap with the sale of treasury bonds and bills, as well as external grants and loans. Kouchouk said the Cabinet has given its preliminary approval on the upcoming eurobond issuance. The Ministry is planning to issue $3-$4 billion in bonds next January, in addition to 1-1.5 billion in eurobonds in February, El-Garhy told Al-Mal. An IMF delegation will visit Cairo at the end of October or mid-November to conduct a review of the government's economic reform programme before disbursing the third $2 billion tranche of a $12 billion loan in December, Kouchouk said. On fuel subsidies, El-Garhy said the government does not intend to cut energy subsidies further this fiscal year, as world oil prices are currently stable. The subsidies are set to be lifted over the course of five years. Source: Ahram online
