Egypt’s Finance Minister Ahmed Kouchouk said that the total deficit in Egypt’s general budget decreased during the fiscal year 2023-2024, which ended on June 30, to 505 billion pounds ($10.5 billion), compared to 610 billion ($12.65 billion) in the previous fiscal year.
He added, in a statement on Wednesday, that Egypt recorded a primary surplus of 857 billion pounds in the 2023-2024 budget, compared to 164 billion ($17.77 billion) in the previous fiscal year.
Primary surplus means the surplus achieved when expenses (excluding debt and its service) are deducted from revenues.
pound depreciation
Egypt allowed the pound to fall 29% against the dollar in March to curb rising inflation. The pound had been stable at 30.85 to the dollar for a year before falling to around 50. It is now trading at just over 48 pounds in banks.
Since the devaluation, Egypt has increased the prices of subsidized basic goods such as bread and fuel in an attempt to reduce the budget deficit.
Kojok said that his ministry met the various needs of the education sector, which amounted to about 256 billion pounds ($5.3 billion), compared to about 230 billion pounds ($4.77 billion) in the original budget, and also provided for the needs of the health sector, which amounted to about 180 billion pounds ($3.73 billion), compared to about 148 billion pounds ($3 billion) in the original budget.
load shedding
Meanwhile, Egyptian Prime Minister Mostafa Madbouly said that Egypt will stop reducing electricity loads during the summer season starting next Sunday after the arrival of a number of natural gas shipments, in an attempt to end a crisis that has disturbed Egypt’s population of 106 million people.
Egypt suffers from power outages as demand for cooling increases during the summer, which increases consumption. Egypt generates most of its electricity by burning natural gas.
Load shedding refers to the alternating disconnection of power to parts of the power grid to prevent the collapse of the entire system when demand exceeds the system’s capacity.
Madbouly said in a televised press conference that Egypt’s daily electricity consumption exceeded 37 gigawatts, up 12% compared to last year.
The Ministry of Petroleum said on Monday that it had received five shipments containing 155,000 cubic meters of liquefied natural gas out of 21 shipments contracted by the country.
Madbouly said last month that Egypt needs to import about $1.18 billion worth of natural gas and diesel fuel to end the long-running power outage.
Egypt has not imported liquefied natural gas since 2018, but natural gas supplies have declined as population growth and urban development have increased demand for electricity.
Madbouly said the government intends to meet energy demand during the summer of 2025 by investing in renewable energy.
