Egypt posted a record primary budget surplus of EGP 629 billion for fiscal year 2024/25, equivalent to 3.6% of GDP, topping the previous year’s EGP 350 billion by a striking 80%, the Presidency announced on August 16. Despite a 60% shortfall in Suez Canal revenues—resulting in an EGP 145 billion loss—the finance ministry credited the success to a surge in private investment, manufacturing activity, and exports.
Key to this achievement was a 35% surge in tax revenues, reaching approximately EGP 2.2 trillion, aided by tax base expansion, streamlined facilities, and improved business-government relations. Overall revenues rose 29%, while primary expenditures increased 16.3%.
The strong fiscal performance aligns with signs of broader economic revival. The IMF boosted its growth forecast for FY 2024/25 to 3.8% following improved economic activity and fiscal discipline. It praised enhanced public investment oversight and tax reform, while urging broader revenue mobilization.
