Cairo – Mubasher: Egypt’s primary budget surplus increased by 21% year-on-year during the first two months of fiscal year 2019/2020, according to the monthly report released by the Ministry of Finance.
The North African nation achieved a primary surplus of EGP 2.3 billion, representing 0.04% of the country’s gross domestic product (GDP), during July and August, compared to EGP 1.9 billion in the year-ago period.
The primary surplus is the difference between revenue and expenses after the deduction of debt service.
Meanwhile, the country’s total budget deficit narrowed to EGP 78.19 billion during the first two months of FY19/20, representing 1.3% of GDP, compared to EGP 83.63 billion, or 1.6% of GDP, in the corresponding months of FY18/19.
Revenues
Revenues increased to EGP 107.15 billion in July and August, compared to EGP 100.57 billion, while expenditures grew to EGP 185.35 billion from EGP 184.2 billion in the first two months of FY18/19.
Tax revenues fell to EGP 80.66 billion during July and August, compared to EGP 83.85 billion in the year-ago period, while non-tax revenues surged to EGP 26.49 billion from EGP 16.72 billion in the first two months of FY18/19.
Debt service expenses
The country’s debt service expenses retreated by 6% to EGP 80.56 billion during the two-month period ended 31 August from EGP 85.77 billion in the year-ago period on the back of lower local interest rates.
Local government debt service expenses plunged to EGP 2.47 billion in July and August from EGP 12.06 billion, while local non-government debt service expenses increased to EGP 67.17 billion, compared to EGP 63.55 billion in the corresponding two months a year earlier.
In the meantime, Egypt’s foreign debt service expenses went up to EGP 10.91 billion in two months, compared to EGP 10.14 billion in July and August 2018.
The country’s total expenses rose to EGP 185.35 billion during July and August, compared to EGP 184.2 billion in the prior-year period.
