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Egypt’s budget deficit surges to EGP230.9 billion in ten months

Increased budget deficit caused by fall in grants

Egypt’s budget deficit jumped to EGP230.9 billion in ten months – from July to April of FY 2014-2015, compared with EGP163.3bn in the same period last year, according to a report by the Finance Ministry.

This represents 9.9 per cent of the gross domestic product (GDP), compared with 8.2 per cent during July to April 2013-2014, reports Egypt-based Cash News.

Public revenues recorded EGP321bn, compared with EGP541.7bn in total public spending during the previous period.

The report points out that the deficit is despite the improved tax revenue. The fall in grants received by Egypt was the cause of the increased budget deficit.

It adds that the tax revenue rose by EGP44bn to a record EGP239bn by the end of April, recording a 22.6 per cent growth rate over the same period of the previous fiscal year.

Earlier in April, Ashraf Salman, the minister of investment, said that Egypt’s government is working on cutting down the budget deficit to eight per cent of the GDP in the next four years.