Egypt’s budget deficit recorded EGP 219.8 billion, equivalent to 3.1% of GDP during the 4-month period from July to October 2021, compared to EGP 171.3 billion pounds, equivalent to 2.6% of GDP during the same period last year.
What is the Budget Deficit🤷♀️ A budget deficit occurs when government expenditures exceed its revenues, & is used as an indicator of a country’s financial health.
Budget Deficit as a % of GDP🤨 Generally, budget deficits as a percentage of GDP tend to decrease in times of economic prosperity, & increase when the economy isn’t doing as well.
More Details🧐 Total revenues increased 8.4% year-over-year to record EGP 311.3 billion. Tax revenues & non-tax revenues contribute 78.8% & 21.2% of total revenues, respectively.
Total expenditures rose 16.6% year-over-year to record EGP 530.7 billion.
Why is this Important🤔 Budget deficits could lead to inflation, as central banks may need to increase the money supply in the economy, which would increase inflation. To reduce budget deficits, governments could reduce spending, increase revenue, or a combination of both.
