The Egyptian Ministry of Finance has estimated that the service sector deficit to be financed by the state's general treasury for the current fiscal year is approximately 295.96 billion EGP. This represents a 24.8% increase from the 237.24 billion EGP recorded in the previous fiscal year. According to official documents, this increase coincides with a rise in several expenditure items.
The documents reveal that allocations for purchasing non-financial assets, or investments, have increased by 31% to 232.76 billion EGP. Additionally, expenditures on goods and services have risen by 35.3% to 57.93 billion EGP, while wages and employee compensations have grown by 16.4% to 118.42 billion EGP. These increases have contributed to a 24.1% rise in the total usage of service sector entities.
The total usage of service sector entities has reached 489.93 billion EGP, up from 394.88 billion EGP in the previous year. Meanwhile, their resources have increased by 11.6% to 201.51 billion EGP, compared to 180.6 billion EGP previously. The education sector has the largest gap between usage and resources, with a deficit of 82.5 billion EGP.
The education sector's usage stands at 113.24 billion EGP, with resources amounting to 30.74 billion EGP. The health sector ranks second, with a gap of 68.84 billion EGP. The housing and community services sector follows, with a gap of 64.2 billion EGP, while the economic affairs sector has a gap of approximately 60.4 billion EGP.
The economic affairs sector comprises several entities working in transportation, roads, irrigation, agriculture, tourism, trade, and other economic and developmental activities. At the entity level, the National Authority for Drinking Water and Wastewater Treatment has one of the largest gaps between usage and resources, standing at 47.48 billion EGP.
This represents an increase of nearly 16 billion EGP from the previous year's 31.48 billion EGP. The General Authority for Roads, Bridges, and Land Transport recorded a gap of 35.22 billion EGP, up from 26.4 billion EGP previously. The General Authority for Educational Buildings reported a gap of 22.06 billion EGP, compared to 18.43 billion EGP in the previous year.
The health sector also saw significant gaps, with the General Authority for Healthcare recording a gap of 10.02 billion EGP, despite a growth in resources to 19.92 billion EGP from 9.5 billion EGP previously. The Cairo University Hospitals reported a gap of approximately 10 billion EGP, up from 3.26 billion EGP in the previous year.
Key points
- The Egyptian Treasury will finance a 296 billion EGP service sector deficit, a 24.8% increase from last year.
- The education sector has the largest gap between usage and resources, with a deficit of 82.5 billion EGP.
- The National Authority for Drinking Water and Wastewater Treatment has one of the largest gaps between usage and resources, standing at 47.48 billion EGP.
