Egypt approves EGP 85 bln budget amendment to cover rising interest costs - Economy

Al-Ahram Weekly

20 hours ago

Egypt's House of Representatives approved on Sunday a government-proposed amendment to the state budget for the 2024/25 fiscal year, adding EGP 85 billion in supplementary spending to cover rising interest payments.
The revision is in response to the depreciation of the Egyptian pound and ongoing economic and geopolitical pressures, which have increased both domestic and external debt servicing costs.
The additional funds will be allocated under Chapter Three of the budget, which covers interest payments. To offset the expenditure, an equivalent EGP 85 billion will be added to projected revenues under Chapter One (Taxes), according to the draft law passed by parliament.
The amendment also requires changes to the treasury's legal budget schedules for the fiscal year, which ends on Monday, 30 June.
A report from the parliamentary budget committee noted that when the 2024/25 budget was drafted — and passed under Law No. 88 of 2024 — the government aimed for a fiscal deficit of 7.3 percent of GDP and a primary surplus of 3.5 percent, in line with its debt-reduction targets.
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