The amendment also includes updates to the treasury’s legal budget schedules for the fiscal year ending June 30, 2025.
Egypt’s House of Representatives has approved a revision to the state budget for the 2024/25 fiscal year, adding EGP 85 billion to cover increased interest expenses.
This adjustment reflects the depreciation of the Egyptian pound and ongoing economic and geopolitical pressures that have elevated the cost of servicing both domestic and foreign debt.
The additional funds are allocated under Chapter Three of the budget, which addresses interest payments. To balance the increase, projected revenues under Chapter One, relating to tax collections, have been raised by an equal amount, as set out in the draft legislation passed by parliament.
The amendment also includes updates to the treasury’s legal budget schedules for the fiscal year ending June 30, 2025.
During the fiscal year, interest rates on public debt instruments climbed to unprecedented levels, leading the government to borrow at higher rates, especially through short-term debt. This increased borrowing added EGP 57.1 billion to the public debt service burden.
Additionally, the Egyptian pound’s depreciation against the US dollar intensified debt servicing costs, as the budget had assumed an average exchange rate of EGP 45 per dollar.
A report from the parliamentary budget committee noted that the original 2024/2025 budget, approved under Law No. 88 of 2024, targeted a fiscal deficit of 7.3% of GDP alongside a primary surplus of 3.5%, aligning with government debt-reduction objectives.
The committee also acknowledged that ongoing regional developments could prompt further amendments to the recently approved state budget, affecting revenues, expenditures, or the projected fiscal deficit.
