The Egyptian Finance Minister told Parliament today, Monday, that Egypt expects to increase spending by 15 percent and increase the deficit by 14.5% in the fiscal year that begins on July 1, as the country faces the repercussions of the Ukrainian crisis and the continuing impact of the Corona virus pandemic.
He added that spending in the 2022-2023 fiscal year will rise to 2.07 trillion Egyptian pounds (112 billion dollars) from 1.79 trillion pounds expected this year.
Revenues are expected to increase to 1.52 trillion pounds from 1.30 trillion pounds in 2021-2022. This will result in a deficit of 558.2 billion pounds, up from 487.7 billion pounds.
Minister Mohamed Maait told Parliament that the global crisis led to a rise in energy and food prices, and that the government was able to face severe and simultaneous shocks due to the strength of the national economy.
He added that the budget was prepared in light of huge challenges and pressures on the country’s economy during the international turmoil that led to an increase in inflation.
The budget deficit is expected to reach 6.1 percent of GDP in 2022-2023, down from an estimate for the current fiscal year of 6.2 percent.
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