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MENA Weekly: Egypt’s budget laid out, Saudi spending cuts

Egypt’s FY2025/26 Budget outlined that the overall budget deficit will remain large, but that’s due to high interest payments. The government is committed to continuing to run a large primary surplus, which will reduce the debt-to-GDP ratio. Elsewhere, reported cuts in spending being mandated by Saudi’s Public Investment Fund add to signs that fiscal consolidation is underway, with policymakers seemingly keen on banks providing more of the financing for investment projects.

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