The revenues from Egypt’s Suez Canal hit a record of 17.6 billion EGP (over $571 million) from July 2022 to March 2023 in the 2022/2023 fiscal year, the canal authority said in a statement on Saturday.
This has significantly contributed to the rise in non-tax revenues in the Egyptian general budget, reaching 184.4 billion EGP, an increase of 11 billion EGP from the same period in the previous fiscal year.
From July to March of the 2022/2023 fiscal year, Egypt’s general budget reported a primary surplus of 50.1 billion EGP. This surplus represents 0.51% of the achieved Gross Domestic Product (GDP), as revealed by the Youm 7 newspaper.
In contrast, the overall deficit in the state’s general budget amounted to 5.5% of the total GDP during the first nine months of the ongoing fiscal year.
The total revenue accrued in the state’s general budget from July 2022 to March 2023 amounted to 925.1 billion EGP, marking an 18.5% growth and an increase of 144.1 billion EGP compared to the same period in the previous fiscal year. Of these total revenues, tax collections represented 80.1%, while non-tax revenues accounted for the remaining 19.9%.
The Suez Canal is a significant source of revenue for Egypt’s economy and an essential global trade route, connecting the Mediterranean Sea to the Red Sea. Opened in 1869, the canal offers the shortest sea link between Asia and Europe and therefore plays a crucial role in international trade.
Egypt’s fiscal year starts on July 1 and ends on June 30 of the next calendar year. Therefore, the period from July to March is a crucial phase in analyzing the fiscal health of the country. In this context, the increased revenue from the Suez Canal, along with other sources of non-tax income, is highly significant.
A budget surplus occurs when income exceeds expenditures, whereas a deficit happens when expenditures surpass income.
A primary budget surplus or deficit is calculated as the difference between the government’s revenue and its expenditures, excluding interest payments on its debt. In this context, a primary surplus suggests that the government is generating enough revenue to cover its operating expenses, excluding interest payments.
Overall, the increase in non-tax revenues, including the revenue from the Suez Canal, and the primary surplus indicate a positive trend in Egypt’s economy during the 2022/2023 fiscal year. It reflects improved economic management and efficiency in the utilization of national resources.
The growth in revenue also signifies a potentially increasing ability of the Egyptian government to invest in public services and infrastructure, ultimately fostering the country’s socioeconomic development.
