Finance Ministry: Deficit climbed to US$13 bn in last five months

Finance Ministry: Deficit climbed to US$13 bn in last five months

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Sun, 23/12/2012 - 19:47

The state budget deficit climbed to LE80.7 billion (US$13.1 billion) in the first five months of the 2012/2013 fiscal year, compared with LE58.4 billion during the same period last year.

In a statement issued Sunday, the Finance Ministry said the deficit is equivalent to 4.5 percent of GDP. The statement also said the primary GDP deficit rose 1.6 percentage points during the five-month period, versus 1.3 percentage points during the same period last year.

The ministry pointed out that state revenues were increased by 40.3 percent between July and November, the first five of the fiscal year, to reach LE108.5 billion, compared to LE77.4 billion during the same period in 2011. It attributed this to an increase in tax revenues by 46.1 percent and non-tax revenues by 26.7 percent.

Also on Sunday, the ministry announced it sold LE2.4 billion in treasury bills over 273 days, out of an initial total offer of LE3.5 billion. The notes sold at an average interest rate of 13.482 percent, with the highest rate being 13.541 percent and the lowest 12.201 percent.

The ministry also said on its website that it has offered other treasury bills for LE4.5 billion over 91 days at an average interest rate of 12.964 percent, with the highest rate being 13.037 percent and the lowest 12.751 percent.

The ministry had earlier said the government would offer treasury bills and bonds of LE150 billion in the second quarter of the 2012/2013 fiscal year.

Egypt’s total foreign and domestic debt reached LE1.2 trillion in June 2011, which corresponds to 88 percent of GDP, according to the state budget.