Egypt achieved a primary surplus of EGP 330 billion in H1 2024/25, the highest to date, driven by a 38.4% increase in tax revenues. The government, led by Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk, is committed to fiscal discipline while enhancing spending in crucial sectors and preparing for future fiscal targets under the IMF reform program.
Egypt has reported a primary surplus of EGP 330 billion for the first half of the fiscal year 2024/25, which is the highest surplus achieved thus far, as announced by Minister of Finance Ahmed Kouchouk. This impressive performance is largely attributed to a significant 38.4% increase in tax revenues compared to the previous year, marking the strongest growth in several years.
On Tuesday, Prime Minister Mostafa Madbouly convened with Kouchouk at the New Administrative Capital to evaluate key financial metrics from July 2024 to February 2025. The Prime Minister underlined the government’s dedication to maintaining fiscal discipline while also increasing investments in critical sectors such as healthcare and education, as well as enhancing social protection initiatives.
Minister Kouchouk emphasized the government’s efforts in improving debt management through the strategic distribution of interest payment obligations and oversight of treasury-funded investments. He reported a notable 29% increase in healthcare expenditure and a 24% rise in education funding from the previous fiscal year, alongside a remarkable 44% increase in subsidies, grants, and social benefits.
The conversation also highlighted the government’s strategic objectives for the 2025-2026 fiscal year, which aim to stimulate economic growth, create job opportunities, and reinforce essential sectors, including tourism and technology. The government is focused on preserving financial stability by meeting fiscal targets, alleviating debt burdens, and enhancing investments in social welfare.
Additionally, Kouchouk shared insights regarding Egypt’s advancements under the International Monetary Fund (IMF) reform program, revealing the approval of the fourth tranche and ongoing preparations for the fifth review. He presented proposals to further diminish the budget sector’s debt in the upcoming fiscal year.
In conclusion, Egypt’s achievement of a primary surplus of EGP 330 billion in the first half of the 2024/25 fiscal year signifies a robust financial performance fueled by rising tax revenues. The government’s focus on fiscal discipline, increased spending in vital areas such as healthcare and education, and strategic adjustments to debt management highlight its commitment to sustaining economic growth and improving social welfare amidst ongoing reforms endorsed by the IMF.
Original Source: www.dailynewsegypt.com
