Egypt's Budget Deficit Increases Despite Rise in Tax Revenue

Recent data from Egypt's Ministry of Finance indicates that the country's budget deficit has grown to 3.2% of GDP in the first four months of the fiscal year (July – October 2025), up from 2.6% during the same period last year.

While the country recorded a primary surplus of 1.1% of GDP, an improvement from 0.7% the previous year, the costs associated with debt servicing have overshadowed this surplus. Interest payments have surpassed total revenues by 104%, consuming all available revenue streams.

Tax revenues saw a notable increase of 35%, totaling 756.7 billion pounds and accounting for 87.5% of overall revenues. In contrast, total public revenues rose by 33% to 864 billion pounds.

However, interest payments surged by 54% to reach 899.1 billion pounds, while total expenditures increased by 37% to 1.5 trillion pounds, highlighting significant challenges for the country's public finances.