Public revenues during July and August of fiscal year (FY) 2015/2016 increased by 34.5% to a record EGP 46.3bn, an increase worth EGP 11.9bn compared to the same period of the last FY, according to the monthly report of the Ministry of Finance.
This is considered the highest growth rate of public revenues in the past three years, according to the report.
The report attributed this increase to the marked improvement in the national economy, which is reflected in an increase in tax revenue worth EGP 8.2bn, to achieve a total of EGP 36bn, marking an increase of 29.3%. This is in addition to the increase of non-tax revenues by EGP 3.7bn to record EGP 10.2bn, with a growth rate of 56.6%.
The report added that the economic improvement and reforms undertaken by the government at the beginning of the last FY led to an improvement in income tax revenue, to record EGP 9.4bn, of which EGP 2.2bn is from the Suez Canal, marking an increase of 37.5% in two months.
This comes in addition to EGP 3.4bn in payroll tax revenues, marking an increase of 18%, as well as EGP 800m in taxes from commercial and industrial activity, with a growth rate of 87.7%.
“Sales tax revenues also rose to EGP 19.2bn, with a growth rate of 34.2%, the highest growth rate in sales taxes during the mentioned two months and over the past three years, which reflects the recovery of the domestic market and the growth of commercial and service activities since the beginning of the current FY,” the report read.
“Property tax revenues rose by 37.2% to record EGP 4bn. Further, tariffs revenues rose by 22.2% to record EGP 3.5bn, with an increase of about EGP 600m compared to the same period of the last FY.”
The report revealed that Egypt received grants and aids from Arab countries valued at EGP 2.6bn during the months of July and August of the current FY. Furthermore, goods and services tax rose by 50% to record EGP 2.6bn, due to the increase of tax collection from private equity funds, marking an increase rate of 39.5% to record EGP 1.7bn.
As for public expenditure, the report said it saw a small hike to record EGP 110.4bn, an increase of 3.9%.
Public expenditure included of EGP 33.6bn for wages of government administrative bodies’ employees, marking a slight growth of 2.6%.
It also included the allocation of EGP 26.7bn for subsidies, grants and social benefits, marking an increase of 69.6%, which includes EGP 8.3bn to support goods and commodities subsidies, with an increase of 91.7%. The amount allocated for electricity sector support was EGP 5.2bn, according to the report.
The report said spending on public investment increased by 61.4% to record EGP 3.3bn, and EGP 2.4bn were allocated for the purchase of goods and commodities, marking an increase rate of 33.4%.
