Egypt’s government, led by Prime Minister Mostafa Madbouly, has set ambitious fiscal goals for the new financial year. During a key meeting with Finance Minister Ahmed Kouchouk and other senior officials, the government unveiled its financial performance indicators and budgetary plans, highlighting a commitment to fiscal discipline, economic growth, and social welfare, underscoring the government’s commitment to a sustainable financial future.
Egypt has achieved its highest-ever primary surplus, recording an impressive LE 330 billion between July 2024 and February 2025. This fiscal success, driven by a remarkable 38.4% increase in tax revenues year-on-year, highlights the government’s effective strategies in revenue generation and fiscal management. These achievements have set the stage for increased investments in critical sectors.
With the boost in revenue, the government has directed substantial financial commitments towards health and education, with spending rising by 29% and 24% respectively from the previous fiscal year. This strategic investment underscores a strong commitment to enhancing public services and supporting vulnerable populations, as evidenced by a 44% increase in expenditures on subsidies, grants, and social benefits.
Minister Kouchouk emphasized the importance of strategic debt management through the careful distribution of interest payments. By moderating the growth rate of treasury-funded investments, the government aligns its fiscal approach with a focus on prioritizing public spending and adhering to expenditure ceilings. This disciplined strategy ensures a sustainable economic trajectory.
Looking to the future, the FY 2025/2026 budget centers on driving economic growth and job creation. By bolstering confidence in the Egyptian economy and supporting key productive sectors, including tourism and technology, the government aims to cultivate a robust economic environment that fosters opportunities and innovation.
A cornerstone of the fiscal strategy is the enhancement of social protection and human development programs. Increased allocations for initiatives like the Takaful and Karama program promise continued support for vulnerable groups, fostering inclusive economic growth and strengthening the social fabric.
Minister Kouchouk provided updates on the progress of Egypt’s IMF reform program, celebrating the approval of the fourth tranche disbursement and preparations for the fifth review. Proposals to reduce the debt of budgetary entities further demonstrate Egypt’s commitment to fiscal sustainability and long-term economic resilience.
With a well-rounded approach that merges economic growth, fiscal prudence, and expanded social support, Egypt’s financial strategy for FY2025/2026 is poised to sustain development while ensuring economic stability. This balanced pathway not only holds the promise of a resilient economic future but also strengthens the nation’s commitment to the well-being of its citizens.