Egypt has recorded a primary surplus of EGP 330 billion in H1 2024/25 due to a 38.4% increase in tax revenues, marking its highest surplus. Key spending in sectors like healthcare and education has risen, while the government focuses on financial discipline and debt management. Continued collaboration with the IMF is also noted.
Egypt has achieved a historic primary surplus of EGP 330 billion for the first half of the fiscal year 2024/25, as announced by Minister of Finance Ahmed Kouchouk. This represents the highest surplus to date, driven by a substantial 38.4% year-on-year increase in tax revenues, the most significant growth rate observed in recent years.
During a meeting held on Tuesday at the government headquarters in the New Administrative Capital, Prime Minister Mostafa Madbouly and Minister Kouchouk reviewed key financial performance indicators from July 2024 to February 2025. The Prime Minister reaffirmed the government’s dedication to financial discipline, highlighting increased expenditures in crucial sectors such as healthcare and education, along with enhanced allocations for social protection initiatives.
Kouchouk elaborated on the government’s strategy for improved debt management, particularly emphasizing the efficient distribution of interest payment obligations and the regulation of treasury-funded investments. He noted a substantial 29% increase in healthcare expenditures and a 24% rise in education spending compared to the previous fiscal year, while subsidies, grants, and social benefits experienced a significant 44% increase.
The discussion also covered the government’s objectives for the 2025-2026 fiscal year, which aim to stimulate economic growth, create job opportunities, and support essential sectors like tourism and technology. The government is committed to maintaining financial stability by adhering to fiscal goals, reducing debt burdens, and increasing investments in social protection programs.
Kouchouk further informed on Egypt’s progress within the International Monetary Fund (IMF) reform program, mentioning the approval of the fourth tranche and the preparations underway for the fifth review. He also proposed strategies aimed at decreasing the budget sector’s debt in the upcoming fiscal year.
In summary, Egypt’s primary surplus of EGP 330 billion in H1 2024/25 accentuates the nation’s robust financial performance backed by significant tax revenue growth. The government’s focus on financial discipline, enhanced spending in essential sectors, and commitments to social protection signify a strategic approach to economic stability. Moreover, efforts under the IMF reform program illustrate the ongoing commitment to fiscal health and debt management for future growth.
Original Source: www.dailynewsegypt.com
