
(3 Minutes Read)
During the fiscal year, interest rates on public debt instruments rose to unprecedented levels, prompting the government to borrow at higher rates, particularly through short-term debt. This increased borrowing added EGP 57.1 billion to the public debt service burden.
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.
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During the fiscal year, interest rates on public debt instruments rose to unprecedented levels, prompting the government to borrow at higher rates, particularly through short-term debt. This increased borrowing added EGP 57.1 billion to the public debt service burden.