The Finance Ministry has revised downwards its fiscal targets for FY 2022-2023 as rising commodities prices put pressure on public finances, according to figures published in an Ittihadiya statement
Deficit still on course to narrow: The government now sees the budget deficit contracting to 6.3% of GDP in the upcoming 2022-2023 fiscal year from an expected 6.9% in the current FY. Preliminary figures released by the ministry in January had targeted a 6.1% deficit in the coming fiscal year.
This will mean a slimmer primary surplus: The ministry has lowered its primary surplus target to 1.5% in 2022-2023 from 2% previously.
No word on debt: Finance Minister Mohammed Maait didn’t disclose the ministry’s debt-to-GDP target for the coming fiscal year. The minister said in January that public debt levels were expected to fall to below 90% of GDP in 2022-2023.
Or GDP: The statement didn’t disclose whether the government has altered its growth forecast in response to the conflict and the resulting inflation. The ministry is currently targeting a 5.7% growth rate in 2022-2023.
