Government: Repayment of loan installments does not constitute a burden on the budget and does not fall within the cash deficit

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The Egyptian government stressed that the payment of installments of loans, whether local or external, to be repaid during the new fiscal year, does not constitute a real burden on the budget, because it is not linked to the public expenditure periodic, but actually represent a dependence on public debt on the state and a reduction of its obligations.

According to the financial statement for the new year 2019/2020 submitted to the House of Representatives, headed by Dr. Ali Abdel-Al, the repayment of these loans does not fall within the calculation of the cash deficit or the total deficit of the state budget.

According to the financial statement submitted by the government, the uses side includes about 376 billion pounds representing the installments of loans to be paid during the fiscal year 2019/2020 whether local or external loans.

In a related context, the financial statement pointed out that the public resources aspect, "which includes both international public revenues and sources of funding" includes 820 billion pounds representing borrowing and issuance of securities.

It is worth mentioning that the budget volume (public uses of the state) for the fiscal year 2019-2020 reached LE 1,979 million (32.1% of the GDP) divided into one trillion and 574 billion expenditure of 25.6% of the GDP compared to one trillion and 424 billion this year (10.6%), 29 billion for the acquisition of financial assets by 0.5% of GDP, and finally the repayment of loans (domestic and foreign) by LE 376 billion, 6.1% of GDP.

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