Egypt's budget deficit has increased to reach about 6.9 percent of GDyP (LE159 billion), compared to 6 percent (LE119.6 billion) during July-January 2013/2014, the Finance Ministry said on Monday.
The monthly financial bulletin for February 2015 explained that the main reason behind the growing budget deficit was the 78.8 percent decrease in grants from Gulf countries, which reached LE7.9 billion during July-January 2014/2015, compared to about LE37.3 billion during the same period of the previous fiscal year.
Total revenues reached LE186.7 billion (8 percent of GDP) during July-January 2014/2015, declining by around LE31.3 billion compared to same period last year, due to the fall in grants and tax revenues.
Meanwhile, total expenditures reached LE337 billion (14.5 percent of GDP) during July-January 2014/215, increasing by around LE3.6 billion only, compared to same period last year.
The increase in expenditures was mainly due to the rise in interest payments by LE7.4 billion (8.7 percent increase), to reach a total of LE92.9 billion (4 percent of GDP).
The total government debt (domestic and external) reached LE1995.1 billion (86 percent of GDP) at the end of September 2014, compared to LE1721 billion (86.2 percent of GDP) in September 2013.
The Egyptian government is aiming to reach a budget deficit of 9 percent in three years, the Investment Minister Ashraf Salman said.
The government also plans to cut its subsidy bill by 80‐90 percent in the next five years, according to the Finance Minister Hany Qadry Demian.
