In the fiscal year 2023-2024, Egypt achieved a primary surplus of 3% of GDP, amounting to 416 billion pounds, with an annual growth rate exceeding 8.5 times. This remarkable achievement was made possible due to the expansion of mechanization aimed at broadening the tax base and formalizing the informal economy. Despite facing global and regional crises, and an increase in interest rates, Egypt’s total deficit was stabilized at 5.4%.
The Minister of Finance, Mohamed Maait, stated that non-tax revenues increased by 123%, while tax revenues surpassed one trillion pounds with a growth rate of 41%. Investments funded by the state’s public treasury decreased by 19% to create space for the private sector. The government aims to reduce the debt service bill to 30% of public expenditures in the medium term, aiming to lower the debt rate to 80% by June 2027. Furthermore, Egypt’s goal is to reduce the debt portfolio’s lifespan to 3.3 years by June 2024, which will alleviate some financing needs in its general budget.
Maait also highlighted the efforts of his ministry’s investor relations unit in maintaining open dialogues with about 2,000 investment institutions worldwide throughout the year. The unit issues a monthly report on economic performance indicators, debt, deficit, and primary surplus rates to provide foreign investors with accurate and up-to-date information on Egypt’s economic situation. Overall, Maait emphasized that these achievements were made without placing new burdens on citizens or investors.
In conclusion, Egypt has achieved significant financial success during the fiscal year 2023-2024 despite facing global and regional crises and an increase in interest rates. The country has managed to stabilize its total deficit at just over half percent while achieving impressive economic growth rates through expanding automation and formalizing its informal economy. Additionally, Egypt has set ambitious goals for reducing its debt service bill and shortening its debt portfolio lifespan over time while ensuring transparency through regular reports provided by its investor relations unit.
The Ministry of Finance’s efforts have been instrumental in attracting foreign investment into Egypt as it strives towards becoming a major player in global trade while also addressing domestic challenges such as poverty reduction and job creation. With this level of dedication towards achieving financial stability and growth objectives coupled with transparent reporting mechanisms put in place by Egyptian authorities, it is clear that their efforts are bearing fruit as they continue their journey towards sustainable economic development over time.