Gov't Succeeded in Controlling Budget Items with Exception of Interest Expense

The Egyptian Ministry of Finance said that it succeeded in controlling all items of the general budget, except for the interest expense item, during the current and next fiscal year.

Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings—bonds, loans, convertible debt or lines of credit.

The Ministry of Finance attributed debt interest out of control during the aforementioned years to a package of factors, which included inflationary pressures, interest hikes globally and locally in the first place, in addition to the decline in the local currency exchange rate against the dollar, and the consequent increase in the volume of debt, according to the financial statement of the new budget.