Cairo – Mubasher: The budget deficit-to-gross domestic product (GDP) ratio of Egypt rose to 3.85% during the first quarter (Q1) of fiscal year (FY) 2023/2024, compared to 2.05% in the same quarter a year ago, according to the Ministry of Finance's monthly report.

The value of Egypt’s budget deficit increased to EGP 455.88 billion in Q1-23/24 from EGP 206.77 billion in Q1-22/23.

Meanwhile, the country’s revenues grew to EGP 335.13 billion during Q1-23/24, compared to EGP 258.85 billion in the same period of the previous FY.

Egypt’s expenditures also rose to EGP 790.86 billion during the July-September 2023 period when compared with EGP 466.41 billion in Q1-22/23.

The noticeable increase in the expenditures was driven by higher debt interest expenses to EGP 477.49 billion during Q1-23/24 from EGP 216.94 billion in the same period of the previous FY.

The ministry noted that despite the widened deficit, Egypt's budget recorded a primary surplus of EGP 21.60 billion in Q1-23/24, equivalent to 0.18% of the GDP.