Egypt’s Ministry of Finance has announced that the country achieved a primary surplus in the fiscal year 2023-2024, reaching 416 billion pounds, which is equivalent to 3% of GDP. This achievement was accompanied by an annual growth rate exceeding 8 and a half times. Non-tax revenues saw a significant increase of 123%, while tax revenues surpassed one trillion pounds with a growth rate of 41%. The expansion of business mechanization aimed at broadening the tax base and formalizing the informal economy without imposing new burdens on citizens or investors played a significant role in achieving this feat.
Despite global and regional crises, Egypt managed to stabilize its total deficit at 5.4%. The government also plans to reduce the debt service bill to 30% of public expenditures in the medium term and bring the debt rate down to 80% by June 2027. To achieve these goals, investments funded by the state’s public treasury decreased by 19% to create more opportunities for the private sector.
The Ministry’s Investor Relations Unit engages in open dialogue with around 2,000 investment institutions worldwide throughout the year. They provide monthly reports on economic performance indicators, debt, deficit, and primary surplus rates to provide accurate data to foreign investors on Egypt’s economic situation. The ministry aims to reduce the debt portfolio’s lifespan to 3.3 years by June 2024, which will alleviate the general budget’s financing needs.
Overall, Egypt’s Ministry of Finance has made significant progress in achieving its financial goals for the fiscal year 2023-2024 despite global and regional challenges. The primary surplus achieved is commendable and reflects the government’s commitment to achieving sustainable economic growth while managing debt levels effectively.
