Egypt Daily News – Egypt’s Finance Minister Ahmed Kajouk recently reported significant changes regarding the country’s subsidies and fiscal health for the fiscal year 2023-2024.
In a press conference, he noted that fuel subsidies had surged by 31% year-on-year, totaling 165 billion pounds (approximately $3.35 billion). In tandem, food subsidies also increased, reaching 133 billion pounds, marking a 10% rise from the previous year.
This year, the Egyptian government implemented price hikes for fuel and bread—key subsidized commodities—aligning with requirements set by the International Monetary Fund (IMF) related to an $8 billion loan program.
Kajouk acknowledged the difficult challenges facing the Egyptian populace and the economy, emphasizing that the state is working to alleviate the pressures of these economic reforms.
He stated that there were no new taxes imposed in the last year, and despite the increase in tax revenues—30% year-on-year—these funds were dedicated to health, education, and social protection programs.
Notably, the growth in tax revenues of 60% outpaced the growth in expenditures. The government successfully diversified its revenue sources, leading to a significant 190% increase in the tax rate, with the treasury benefiting from 50% of the “Ras Al-Hikma” deal.
Kajouk highlighted that the government had managed to rationalize spending, achieving a reduction in the budget deficit to 3.6% of the GDP and attaining a primary surplus of 6.1%, bolstered by revenues from the aforementioned deal.
Total tax revenues for the fiscal year reached 1.630 trillion pounds (an increase of 30%) against total expenditures of 3.016 trillion pounds.
In previous statements, Kajouk indicated that the total fiscal deficit fell to 505 billion pounds (around $10.5 billion), down from 610 billion pounds a year prior, while the primary surplus rose significantly from 164 billion pounds to 857 billion pounds.
The fiscal year in Egypt concludes on June 30.
