Egypt achieved a historic primary surplus of LE 330 billion, with tax revenues increasing by 38.4 percent year-on-year. The government has prioritized spending in essential sectors such as health and education, while also emphasizing enhanced support for social welfare programs. Strategic debt management and initiatives to stimulate economic growth are outlined in the upcoming FY2025/2026 budget.
As of March 2025, Egypt achieved its highest primary surplus ever, amounting to approximately LE 330 billion from July 2024 to February 2025, according to the Minister of Finance, Ahmed Kouchouk. This fiscal accomplishment demonstrates the government’s commitment to enhancing financial stability and improving revenue generation within the economy.
Minister Kouchouk reported a remarkable year-on-year increase in tax revenues of 38.4 percent, marking the highest annual growth rate in recent years. This boost in revenue has allowed for notable increases in essential sector spending, with health expenditures rising by 29 percent, and education funding by 24 percent compared to the previous fiscal year. Additionally, expenditures on subsidies, grants, and social benefits surged by 44 percent, indicating a firm commitment to supporting vulnerable populations.
The Minister also addressed advancements in debt management, which have improved through a more effective distribution of interest payment obligations throughout the year. Moreover, the growth rate of treasury-funded investments has decelerated, in line with the government’s strategic focus on public spending. This approach aims to ensure sustainability in finances by adhering to the fiscal year’s expenditure limits.
Looking forward, the Minister outlined key priorities for the fiscal year 2025/2026 budget, which include stimulating economic growth and promoting job creation. The government intends to bolster confidence in the Egyptian economy by supporting productive sectors while also expanding tourism and technology industries. Importantly, financial and economic stability will remain a priority, emphasizing fiscal targets, debt reduction, securing energy resources, and fulfilling commitments in various sectors.
Furthermore, increased investments in social protection and human development programs will provide continued support to vulnerable groups. Initiatives such as the Takaful and Karama program and enhancements in the health sector and other social welfare projects are part of this strategy.
Additionally, the Minister reported on the status of Egypt’s IMF reform program, mentioning the approval of the fourth tranche disbursement and ongoing preparations for the fifth review. He proposed measures aimed at reducing the debt of budgetary institutions, thereby reaffirming the government’s focus on fiscal sustainability and long-term economic resilience.
With a balanced strategy that incorporates economic growth, fiscal discipline, and increased social support, the financial strategy for FY2025/2026 positions Egypt to continue its development while maintaining economic stability.
In conclusion, Egypt’s recent fiscal accomplishments, highlighted by a primary surplus of LE 330 billion and a 38.4 percent increase in tax revenues, reflect the government’s dedication to improving financial stability. By prioritizing investment in critical sectors such as health and education, along with enhanced social spending, Egypt aims to stimulate economic growth while ensuring support for vulnerable communities. The government’s strategic plan for FY2025/2026 seeks to balance fiscal discipline with expanded social programs to foster long-term economic resilience.
Original Source: www.egypttoday.com
