"The relationship between the public budget deficit and public debt in Egypt for the period from 2011-2020"

Abstract

The success of countries is measured by the researchers of their economic stability, so they have paid great attention to the public budget deficit because of its direct relationship to the economic situation of the country. And the budget deficit is one of the most important problems that the Egyptian economy suffers from, it is a structural imbalance that is not related to the trade cycle and shows the superiority of government spending items over public revenues

, and the Egyptian government has sought to confront a deficit in its public budgets and work to reduce it through an economic reform program, by a deflationary policy that works to increase revenues and rationalize public expenditures. Despite that, ​still represents a major challenge for the Egyptian government, as the proportion of the overall deficit in the Egyptian public budget (8.0%) it's what represents the total deficit for the fiscal year (2019-2020), which constitutes more than twice the percentage allowed by the European Union Agreement (Maastricht), which specified (3%) as an indicator of the acceptable size of the public budget deficit Since most countries of the world resort to public debt in order to cover the deficit in their public budgets, the chronic deficit in the public budget in Egypt was one of the most important causes of excessive internal and external borrowing, which has grown in addition to the aggravation of the burden of debt services.