Egypt's draft 2022/23 budget projects spending to rise by 15%

Egypt expects spending to rise by 15% and its deficit by 14.5% in the fiscal year that begins on July 1 as it faces fallout from the Ukraine crisis and continued pain from the coronavirus pandemic, the finance minister told parliament on Monday. Spending for the 2022/23 fiscal year will rise to 2.07 trillion Egyptian pounds ($112 billion) from a projected 1.79 trillion pounds this year, he said.

Egypt expects spending to rise by 15% and its deficit by 14.5% in the fiscal year that begins on July 1 as it faces fallout from the Ukraine crisis and continued pain from the coronavirus pandemic, the finance minister told parliament on Monday.

Spending for the 2022/23 fiscal year will rise to 2.07 trillion Egyptian pounds ($112 billion) from a projected 1.79 trillion pounds this year, he said. Revenue will increase to a projected 1.52 trillion from 1.30 trillion pounds in 2021/22. This will result in a deficit of 558.2 billion pounds, up from 487.7 billion.

"The global crisis has resulted in increased energy and food prices. The government has been able to confront the severe and simultaneous shocks because of the strength of the national economy," Mohamed Maait told parliament. "The budget was prepared in the shadow of terrific challenges and pressures on the national economy during the international turmoil that has led to an increase in inflation."

The budget deficit is forecast at 6.1% of the gross domestic product in 2022/23, down from an estimated 6.2% in the current financial year.

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