Egypt's budget deficit narrowed to 6% of gross domestic product in the fiscal year (FY) that ended in June 2023, Finance Minister Mohamed Maait said. The debt-to-GDP ratio also improved, falling to 95.8% in 2023 from 103% in June 2016. He indicated that a primary surplus of 1.6% of GDP in FY 2022/23 contributed to the improved fiscal position. Maait said in Wednesday's statement that the narrowing of the deficit comes as the government works to contain the impact of fluctuating interest and exchange rates, as well as waves of global and domestic inflation. Maait said Egypt has boosted social spending on healthcare, education, and social protection programs. Actual expenditures on the healthcare sector in the past fiscal year amounted to EGP 147.2bn, compared to EGP 136bn in FY 2021/22, representing an 8.2% increase. Moreover, education spending rose by 8.9% to reach EGP 212.2bn, compared to EGP 194.8bn, the minister added. Public revenues across all sectors grew by 26.9% compared to FY 2021/22, exceeding the target for FY 2022/23 by 107.6%. This growth was supported by efforts to modernize and digitize tax and customs systems, expand the tax base, promote tax justice, combat tax evasion, and resolve tax disputes. Regarding state-owned enterprises' performance enhancement, he said that they have exhibited improved financial performance, with their annual net profits surging by 50.3% during the past fiscal year. The government has settled EGP 191bn in annual instalments to the National Social Insurance Authority as part of an agreement to resolve the backlog of social insurance fund dues accumulated over half a century. Maait emphasized the government's unwavering commitment to social protection and human development, particularly in the areas of healthcare and education. Additionally, the government will continue to support productive and export-oriented sectors to further bolster Egypt's economic resilience.
