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Egypt budget deficit widens

During the July-March period, tax revenues surged by 21.3 per cent or EGP36bn to EGP204.9bn.

Egypt’s budget deficit swelled to EGP218.3 billion in the first nine months of the current fiscal year, which began in July 2014.

Egypt’s deficit in the same period in the previous fiscal year stood at EGP145bn.

The country’s finance ministry says that the state’s budget deficit now comprises 9.4 per cent of its gross domestic product.

In a report, the Egyptian finance ministry explains that the rise in the budget deficit was mainly driven by higher spending on social justice programmes.

Meanwhile, in the report published by Youm7, the ministry notes that the country’s revenues slightly dipped by 0.6 per cent to EGP282.1bn in the first nine months of the current fiscal year.

During the July-March period, tax revenues surged by 21.3 per cent or EGP36bn to EGP204.9bn.

In earlier remarks, Egyptian Prime Minister Ibrahim Mahlab said that the budget deficit is projected to remain below 10 per cent of the gross domestic product in the current fiscal year.

He also said that the GDP is expected grow by 4 per cent in the 2014-2015 fiscal year.