Egypt has achieved a primary surplus of LE 330 billion from July 2024 to February 2025, with tax revenues up by 38.4%. Spending on health and education has increased, alongside a 44% rise in social expenditures. The FY2025/2026 budget prioritizes economic growth, social support, and debt management, reinforcing Egypt’s commitment to fiscal sustainability and stability.
Egypt has announced a historic primary surplus of approximately LE 330 billion for the period from July 2024 to February 2025, as reported by Finance Minister Ahmed Kouchouk. This achievement underscores the government’s dedication to enhancing financial stability and revenue generation.
Kouchouk, in a meeting with Prime Minister Mostafa Madbouly, noted a remarkable growth in tax revenues of 38.4 percent year-on-year, which represents the highest growth rate in recent years. This revenue increase has allowed for enhanced spending in critical sectors like health and education, which saw rises of 29 percent and 24 percent, respectively, compared to the previous fiscal period. Furthermore, funding for subsidies, grants, and social benefits experienced a substantial increase of 44 percent.
The Minister highlighted improved debt management through strategic distribution of interest payment obligations across the fiscal year. He acknowledged a slowdown in treasury-funded investments, aligning with the government’s strategy to prioritize essential public spending while ensuring adherence to fiscal spending limits.
Looking towards the FY2025/2026 budget, Kouchouk outlined government priorities centered on stimulating economic growth and job creation. The government aims to enhance confidence in Egypt’s economy by supporting productive sectors, expanding the tourism and technology industries, and maintaining financial stability through goals related to fiscal discipline and energy resource security.
Moreover, increases in allocations for social protection and human development programs have been proposed to continue supporting vulnerable groups. Notable initiatives include the Takaful and Karama program and enhancements within the health sector.
Lastly, Kouchouk updated on Egypt’s International Monetary Fund (IMF) reform program, highlighting the approval of the fourth tranche disbursement and ongoing preparations for the fifth review. A proposal to alleviate the debt burden of budgetary institutions has been presented, signaling the government’s commitment to long-term fiscal sustainability and economic resilience.
Egypt’s FY2025/2026 financial strategy combines economic growth, fiscal discipline, and expanded social support, aspiring to sustain development and secure economic stability.
In conclusion, Egypt’s recent fiscal achievements reflect a commitment to both economic and social advancements. The unprecedented primary surplus, significant revenue growth, and increased allocations for essential services demonstrate proactive governmental strategies. With a focus on sustainable growth and social welfare programs, the upcoming budget aims to bolster economic stability and support vulnerable populations, marking a pivotal moment in Egypt’s financial trajectory.
Original Source: www.egypttoday.com
