By Lamia Nabil

The total budget deficit has reached EGP 197.5bn, or 9.5% of GDP, according to the government’s budget report released on Monday.

Total revenues reached EGP 497.1bn, or 24% of GDP, comprising tax revenues of EGP 356.9bn, grants of EGP 2.36bn, and returns on government assets, such as the Suez Canal, of EGP 137.9bn.

Total expenses reached EGP 692.1bn, or 33.4% of GDP, comprising EGP 205.5bn in subsidies, grants and social benefits; EGP 182.5bn in interest payments on loans; EGP 172.2bn in payments and compensation for government employees; EGP 63.7bn in expenditures on non-financial assets, such schools, bridges, and public utilities; EGP 30.7bn in other expenditures, the majority of which goes to the Egyptian military’s budget; and EGP 38.3bn for goods and services purchased by the government.

“We received a summary of the budget from the cabinet,” said Kamal Beshara, a member of the economic and financial committee of the Shura Council. “We will discuss the new budget within the next few days, as we will take some time to read the summary and to put our questions before an open discussion.”

The cabinet prepared the budget for the coming Fiscal Year (FY) 2013-2014, which starts this July.

The cash deficit, the difference between expenditure and revenue, reached negative EGP 195.3bn, 4.9% of GDP, while total net acquisition of financial assets, such as those government bonds and treasury bills purchased from foreign governments, reaching EGP 2.22bn. Net proceeds from non-privatised asset sales and loans reached EGP10.7bn.

The new budget report estimates that the total volume of foreign loans has reached EGP 197.24bn.