Author: Reem Abdelhaliem
The discourse on restoring the prestige of the Egyptian state was one of the key political discourses advanced by the June 2013 regime, and it was not devoid of repercussions, in particular on the state’s general budget. It quickly prompted the government to work towards achieving a primary surplus in the general budget and later adopt a contractionary fiscal policy that continues until today. According to the Central Bank of Egypt, the decision to adopt this austerity policy was needed in order to address an exacerbated State’s indebtedness, which was at 93.5% of the General Domestic Product (GDP) in 2021, an increase from 73.8% of the GDP at the beginning of 2013. As a result, almost 35% of the general budget was diverted toward paying the interest rate, adding further pressure on citizens.
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