Egypt reported a record primary surplus of approximately LE 330 billion and a 38.4 percent increase in tax revenues from July 2024 to February 2025. Social spending rose by 44 percent, showcasing the government’s commitment to supporting vulnerable populations. The FY2025/2026 budget will emphasize economic growth, job creation, and social protection, while maintaining fiscal discipline and stability.
Egypt has reported its highest primary surplus ever, amounting to approximately LE 330 billion for the period of July 2024 to February 2025. Minister of Finance Ahmed Kouchouk attributed this fiscal success to the government’s ongoing efforts to foster financial stability and enhance revenue streams.
Tax revenues have surged by 38.4 percent year-on-year, reflecting the highest growth rate within recent years. This increase has allowed the government to boost expenditures on critical sectors: health and education spending grew by 29 percent and 24 percent, respectively, while spending on subsidies, grants, and social benefits saw a notable increase of 44 percent, emphasizing the state’s dedication to assisting vulnerable communities.
Kouchouk also pointed out advancements in debt management, which were achieved through an effective distribution of interest payment obligations throughout the fiscal year. He indicated that the growth in treasury-funded investments has moderated as part of a strategic focus on prioritizing public expenditures. This adjustment aligns with the government’s goal of ensuring a sustainable financial path by adhering to the fiscal year’s spending limits.
In preparation for the FY2025/2026 budget, Kouchouk outlined key priorities aimed at stimulating economic growth and fostering job creation. The government seeks to bolster confidence in the Egyptian economy by supporting productive sectors and expanding tourism and technology industries. Additionally, it remains committed to maintaining economic stability through strict adherence to fiscal targets, reducing debt, and securing energy resources.
Allocations for social protection and human development programs are being increased, ensuring that the most vulnerable populations continue to receive vital support. Investments are being funneled into initiatives such as the Takaful and Karama program, as well as health and various social welfare projects.
During the meeting, Kouchouk reported on Egypt’s IMF reform program, mentioning the approval of the fourth tranche disbursement and preparations for the fifth review. He also proposed reducing the debt of budgetary institutions, showcasing the government’s focus on fiscal sustainability and long-term economic resilience.
Egypt’s FY2025/2026 financial strategy, combining economic growth, fiscal discipline, and social support, aspires to ensure sustained development alongside economic stability.
In summary, Egypt has reached a historic primary surplus, achieved significant growth in tax revenues, and increased social spending. The government’s focus on sound debt management and strategic public expenditure aims to foster economic growth and job creation while enhancing social protection for vulnerable populations. Moving forward, maintaining fiscal discipline and ensuring financial stability remain essential components of Egypt’s development strategy.
Original Source: www.egypttoday.com
