{"id":611221,"date":"2023-12-04T00:00:00","date_gmt":"2023-12-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/04\/budget-deficit-almost-doubles-in-1q-fy-23-24\/"},"modified":"2023-12-04T00:00:00","modified_gmt":"2023-12-04T00:00:00","slug":"budget-deficit-almost-doubles-in-1q-fy-23-24","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/04\/budget-deficit-almost-doubles-in-1q-fy-23-24\/","title":{"rendered":"Budget deficit almost doubles in 1Q FY 23-24"},"content":{"rendered":"

Egypt\u2019s budget deficit almo<\/strong>st doubled y-o-y in the first quarter of the current fiscal <\/strong>year<\/strong> as rising borrowing costs squeeze public finances. Figures in the Finance Ministry\u2019s latest monthly report (pdf)<\/a> show that the deficit widened to 3.9% of GDP in 1Q FY 2023-24 from 2.1% a year earlier, largely due to the government\u2019s spiraling interest bill.<\/p>\n

Interest payments more than double: <\/strong>We spent EGP 477.5 bn on debt service during the July-September quarter, more than double the EGP 216.9 bn paid out during the same period last year. The mounting interest bill significantly outpaced rising revenues: the cost of debt service alone was more than 40% higher than total revenues during the quarter.<\/p>\n

Remember: <\/strong>Egypt is expected to spend at least USD 42.3 bn on foreign debt repayments in 2024, according to central bank projections<\/a> out last week.<\/p>\n

The FinMin\u2019s crystal ball:<\/strong> In the FY 2023-24 state budget<\/a>, the Finance Ministry forecast:<\/p>\n