Egypt has reported a primary surplus of EGP 330 billion in H1 2024/25, the highest to date. This achievement is supported by a 38.4% increase in tax revenues. The government is focused on financial discipline, expanding sectors like healthcare and education, and reducing debt, while also progressing in IMF reform programs.
Egypt has achieved a remarkable primary surplus of EGP 330 billion in the first half (H1) of the fiscal year 2024/25, as reported by Minister of Finance Ahmed Kouchouk. This surplus represents the highest financial performance in Egypt’s history, driven by a substantial 38.4% year-on-year increase in tax revenues, marking the most significant growth rate in many years.
During a meeting on Tuesday at the government’s headquarters in the New Administrative Capital, Prime Minister Mostafa Madbouly and Minister Kouchouk reviewed financial performance indicators from July 2024 to February 2025. The Prime Minister reiterated the government’s commitment to financial discipline while also highlighting the need for increased expenditures in critical areas such as healthcare, education, and social protection.
Minister Kouchouk elaborated on the government’s strategies to enhance debt management through improved distribution of interest payment obligations and careful control of treasury-funded investments. Notably, healthcare spending rose by 29%, while education spending increased by 24% relative to the prior fiscal year. Furthermore, there was a significant 44% rise in subsidies, grants, and social benefits.
The discussions also covered the government’s priorities for the upcoming fiscal year 2025-2026, focusing on stimulating economic growth, generating employment opportunities, and supporting vital sectors such as tourism and technology. The administration aims to sustain financial stability by meeting fiscal targets, decreasing debt burdens, and enhancing investments in social protection initiatives.
Moreover, Kouchouk updated stakeholders on Egypt’s progress regarding the International Monetary Fund (IMF) reform program, indicating approval of the fourth tranche and preparations for the fifth review. He also proposed strategies to mitigate the budget sector’s debt in the approaching fiscal year.
In summary, Egypt’s significant primary surplus of EGP 330 billion for H1 2024/25 exemplifies its strong financial performance, driven largely by a noteworthy increase in tax revenues. With an emphasis on enhancing key sectors like healthcare and education and a commitment to financial discipline, the government seeks to maintain stability while promoting economic growth. Continued collaboration with the IMF further supports the country’s reform initiatives and financial strategies.
Original Source: www.dailynewsegypt.com
