{"id":567814,"date":"2020-12-08T04:02:40","date_gmt":"2020-12-08T04:02:40","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/"},"modified":"2020-12-08T04:02:40","modified_gmt":"2020-12-08T04:02:40","slug":"egypts-budget-deficit-down-remittances-up","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/","title":{"rendered":"Egypt\u2019s budget deficit down, remittances up"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-03\"><\/a> <strong>Egypt\u2019s budget deficit shrank to EGP 134.9 bn, equivalent to 2.1% of GDP in <\/strong><strong>1Q2020-2021<\/strong> compared to 2.3% during the same period last year, according to a Finance Ministry <a href=\"https:\/\/ent.news\/2020\/12\/Fin-Min-monthly-report-Oct-2020.pdf\">report (pdf)<\/a>. The report attributes the narrowing deficit to an 18.4% y-o-y uptick in state revenues to EGP 204.7 bn, which was partially driven by a 14.1% hike in tax revenues. On the flipside, state spending was up 11% y-o-y to EGP 336.8 bn in the quarter. Finance Minister Mohamed Maait <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b0cf47be-9482-49f9-bc1a-4e4a1019da07\">said last month<\/a> based on preliminary figures that the budget deficit had narrowed to 2.6% of GDP during the first four months of FY2020-2021, compared to 3.1% over the same period last year.<\/p>\n<p><strong>Where did we spend?<\/strong> Spending on civil servants\u2019 salaries and compensation rose 5.1% to EGP 78.7 bn, while spending on pension funds increased by EGP 22.5 bn to EGP 28.5 bn. The government had signed off on a <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/93bd7150-7431-4ce9-b11c-a515f2a55702\">14% rise in pensions<\/a> as of the beginning of the current fiscal year. State spending on healthcare and medicines increased 2.3%, reaching EGP 1.2 bn, while subsidies for essential goods hit EGP 12.4 bn. The state dished out EGP 1.7 bn on export subsidies, up from EGP 900 mn during the comparable period a year earlier.<\/p>\n<p><strong>The long term outlook:<\/strong> Fitch solutions\u2019 <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bfa6cff2-760e-436d-bcac-ba7cf7f0cc68\">monthly MENA report in November<\/a> forecast a budget deficit of 10% on average between now and 2024, while <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/fe09d867-dea8-4f57-9725-da9e7b6b0ecb\">the IMF\u2019s<\/a>October Fiscal Monitor Report forecast the deficit widening from 7.5% to 8.1% by the end of the current fiscal year, before rapidly narrowing to 5.2% in FY 2021-2022 and 3.8% by FY2024-2025.<\/p>\n<p style='font-size: 18px;font-weight: bold' >Remittances rebound in 3Q2020<\/p>\n<p><strong>Remittances from Egyptians living abroad shot up 19.6% y-o-y in 3Q2020 to USD 8<\/strong><strong> bn<\/strong> from USD 6.7 bn over the same period last year, according to a Central Bank of Egypt <a href=\"https:\/\/ent.news\/2020\/12\/workers-remittances-Sept.-2020.pdf\">statement (pdf)<\/a>. Remittances from Egyptians abroad increased by 11.6% in 9M2020 compared to the same period the year before, hitting USD 22.1 bn. Though remittance inflows were <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d9be7866-5adb-4a96-85fa-6f859b1d26a3\">rising steadily<\/a> when the covid-19 pandemic began, they took a <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d28cf123-7ea0-43f5-a2cb-cb815e16b3db\">10% dip<\/a> in 2Q2020. The World Bank <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4d8260d8-383a-43ea-ae39-8d00f572daba\">predicted last month<\/a> that remittances from Egyptians abroad could slow down next year if GCC economies continue to come under pressure from low oil prices and slow economic growth, hampering Egyptian expats\u2019 earnings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt\u2019s budget deficit shrank to EGP 134.9 bn, equivalent to 2.1% of GDP in 1Q2020-2021 compared to 2.3% during the same period last year, according to a Finance Ministry report (pdf). The report attributes the narrowing deficit to an 18.4% y-o-y uptick in state revenues to EGP 204.7 bn, which was partially driven by a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[279,271,104,72,276,1304,348],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-567814","post","type-post","status-publish","format-standard","hentry","category-economy","tag-budget-watch","tag-central-bank-of-egypt","tag-economy","tag-enterpriseam","tag-finance-ministry","tag-gcc","tag-gdp","wpautop","entry"],"acf":{"mongo_id":"e404ce68-8c21-4162-b1e9-10017814d19b","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[567806],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt\u2019s budget deficit down, remittances up - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt\u2019s budget deficit down, remittances up\" \/>\n<meta property=\"og:description\" content=\"Egypt\u2019s budget deficit shrank to EGP 134.9 bn, equivalent to 2.1% of GDP in 1Q2020-2021 compared to 2.3% during the same period last year, according to a Finance Ministry report (pdf). The report attributes the narrowing deficit to an 18.4% y-o-y uptick in state revenues to EGP 204.7 bn, which was partially driven by a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-08T04:02:40+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Egypt\u2019s budget deficit down, remittances up\",\"datePublished\":\"2020-12-08T04:02:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\"},\"wordCount\":357,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"budget watch\",\"Central Bank of Egypt\",\"economy\",\"EnterpriseAM\",\"Finance Ministry\",\"GCC\",\"GDP\"],\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2020\/12\/08\/egypts-budget-deficit-down-remittances-up\/\",\"name\":\"Egypt\u2019s budget deficit down, remittances up - 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Revenues for the period came at\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/146.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563837,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/26\/egypt-beats-budget-deficit-primary-surplus-targets-in-2020-21\/","url_meta":{"origin":567814,"position":1},"title":"Egypt beats budget deficit, primary surplus targets in 2020-21","author":"enterpriseam admin","date":"26 July 2021","format":false,"excerpt":"Egypt\u2019s primary surplus, budget deficit beat expectations in 2020-2021: Egypt recorded a primary surplus of 1.4% of GDP, or around EGP 93.1 bn, during FY2020-2021, Ittihadiya said in a statement yesterday.This is comfortably higher than the 0.9% targeted by the government and better than the IMF\u2019s expectations for a 1%\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/247.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591928,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/22\/egypt-records-state-budget-deficit-of-2-1-in-1q2019-20\/","url_meta":{"origin":567814,"position":2},"title":"Egypt records state budget deficit of 2.1% in 1Q2019-20","author":"enterpriseam admin","date":"22 December 2019","format":false,"excerpt":"BUDGET WATCH- State records budget deficit of 2.1% in 1Q2019-20: The Finance Ministry\u2019s latest fiscal performance report (pdf) showed a budget deficit of EGP 131.5 bn (2.1% of GDP) in the first quarter of FY2019-2020, compared to EGP 102.4 bn (1.9%) in July-September of FY2018-2019. Revenues for the quarter came\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":598693,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/02\/egypts-budget-deficit-hits-5-3-of-gdp-in-9m2018-2019\/","url_meta":{"origin":567814,"position":3},"title":"Egypt\u2019s budget deficit hits 5.3% of GDP in 9M2018-2019","author":"enterpriseam admin","date":"2 June 2019","format":false,"excerpt":"Egypt\u2019s budget deficit fell to 5.3% of GDP in 9M2018-2019, compared to 6.2% in the same period the previous year, the Finance Ministry said in its April monthly bulletin (pdf). The primary surplus came at 0.7% of GDP during the first nine months of the fiscal year. The numbers came\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":592909,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/12\/finance-ministry-eyes-6-4-growth-in-fy-2020-2021\/","url_meta":{"origin":567814,"position":4},"title":"Finance Ministry eyes 6.4% growth in FY 2020-2021","author":"enterpriseam admin","date":"12 November 2019","format":false,"excerpt":"BUDGET WATCH- FinMin says it\u2019s targeting 6.4% growth, 6.2% deficit next fiscal year: The Finance Ministry is eyeing GDP growth of 6.4% in FY2020-2021, up from a targeted 6% for the current fiscal year, according to the ministry\u2019s preliminary budget statement announced by cabinet yesterday. Local press reports had suggested\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/773.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597662,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/13\/budget-deficit-unexpectedly-narrows-in-fy-2022-2023-finmin\/","url_meta":{"origin":567814,"position":5},"title":"Budget deficit unexpectedly narrows in FY 2022-2023 -FinMin","author":"enterpriseam admin","date":"13 August 2023","format":false,"excerpt":"The budget deficit narrowed 0.1 percentage points y-o-y to 6.0%","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/8\/549.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/567814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=567814"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/567814\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/567806"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=567814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=567814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=567814"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=567814"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=567814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}