Macro Analysis /

Egypt: Budget deficit widens 5% y/y to EGP 320bn in Jul-Feb

    1 June 2021
    • Still, fiscal gap narrows to 5.0% of full-year GDP, as economy keeps expanding despite COVID
    • Tax revenues rise 11% y/y due to higher income tax and VAT revenues
    • Interest payments accounted for 73% of tax revenues in Jul-Feb and remain major credit weakness
    • Spending on subsidies drops 3% y/y but social payments jump 40% y/y because of Treasury contributions to pension funds
    • Following COVID-19 outbreak, IMF expects fiscal deficit of 7.3% of GDP in FY 2020/21, primary surplus of 1.0%