Egypt has achieved its highest primary surplus of LE 330 billion from July 2024 to February 2025, with a 38.4 percent increase in tax revenue. The government plans significant investments in essential sectors, including a 44 percent rise in social spending. Key priorities for the upcoming FY2025/2026 budget include economic growth, job creation, and maintaining financial stability after recent IMF reforms.
In a recent report, Egypt exemplified significant fiscal progress, achieving a primary surplus of approximately LE 330 billion from July 2024 to February 2025, as stated by Minister of Finance Ahmed Kouchouk. This surplus underscores the government’s dedication to enhancing financial stability and effective revenue generation.
During a meeting with Prime Minister Mostafa Madbouly, Minister Kouchouk announced that tax revenues surged by 38.4 percent year-on-year, marking an unprecedented growth rate. The increase in revenue has facilitated greater investment in essential services, with funding for health and education rising by 29 percent and 24 percent, respectively. Notably, spending on subsidies, grants, and social benefits escalated by 44 percent, demonstrating the state’s commitment to aiding vulnerable populations.
The Minister also discussed advancements in debt management, highlighting improved distribution of interest obligations throughout the fiscal year. Although the growth rate of treasury-funded investments has decelerated, this aligns with the government’s strategy of prioritizing public spending within defined fiscal limits, thus aiming for long-term financial sustainability.
Moving forward, Kouchouk outlined the key objectives for the FY2025/2026 budget, emphasizing economic growth and job creation. The government intends to bolster confidence in the Egyptian economy by supporting productive sectors, including tourism and technology, while maintaining fiscal targets and reducing debt.
Additionally, the government plans to enhance allocations for social protection and human development programs, with a commitment to supporting vulnerable groups. Increased spending on initiatives such as the Takaful and Karama program and health sector projects illustrates this focus on social welfare.
Kouchouk also provided updates on Egypt’s engagements with the IMF, confirming approval for the fourth tranche disbursement and preparations for the fifth review. A proposal to reduce the debt of budgetary institutions was introduced, reaffirming the government’s resolve toward fiscal sustainability and resilience.
In summary, Egypt’s FY2025/2026 financial strategy adopts a holistic approach, balancing economic growth, fiscal discipline, and expanded social support, aimed at sustaining development while ensuring economic stability.
In conclusion, Egypt’s recent fiscal surplus, substantial increases in tax revenue, and the government’s focus on social spending reflect a commitment to financial stability and inclusive growth. By prioritizing investments in essential sectors and enhancing social protections, the government aims to lay the foundation for sustained economic progress. Additionally, ongoing reforms in debt management and adherence to fiscal targets showcase the determination to achieve long-term economic resilience.
Original Source: www.egypttoday.com
