Egypt’s overall budget deficit narrowed slightly in the first six months of the fiscal year, while the primary surplus rose to about EGP 230bn, its highest level in 20 years.
The Ministry of Finance’s monthly report, issued on Tuesday, revealed that the overall budget deficit fell to 4.15% between July and December 2024, compared to 4.60% during the same period of the previous year. This was attributed to a surge in tax revenues coupled with a decrease in public spending.
Tax revenues grew by approximately 38% during the first half of the fiscal year. The report attributed this to “integrated growth in all types of taxes, driven by the recovery of economic activity and the resolution of the foreign exchange crisis, in addition to the contribution of tax system automation in expanding the tax base.”
The Egyptian government pledged last year to cap investment spending to make room for the private sector.
The primary surplus for the first half of the current fiscal year reached about EGP 230bn, the highest level in 20 years, an increase of EGP 81bn compared to the same period last year.
