7 focus areas from Egypt’s new budget

Egypt targets growth, protection, and stability in FY2025/2026 plan

Egypt’s newly approved draft budget for fiscal year 2025/2026 reveals the government’s sharpened focus on both economic expansion and social support amid ongoing global and regional challenges. With record-setting figures and ambitious goals, the state is betting on a balanced strategy to drive inclusive development while safeguarding vulnerable groups.

Here are seven focus areas that stand out in the new budget plan.

1. Fiscal discipline with growth-oriented spending

The government plans to generate EGP 3.1 trillion in revenues, up 19% from the previous year, while spending is projected to reach EGP 4.6 trillion, an 18% increase. Despite the widening expenditure, a primary surplus of EGP 795 billion (4% of GDP) is targeted — a key indicator of fiscal health.

Debt management remains central, with a goal to bring the debt-to-GDP ratio for general budget entities down to 82.9%, and consolidated debt below 92%.

2. Expanding social protection and subsidies

Social support continues to be a top priority, with EGP 732.6 billion allocated for subsidies, grants, and benefits — a 15.2% jump. Key increases include:

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  EGP 160 billion for food subsidy programs (bread, ration cards)

  
  


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  EGP 54 billion for Takaful and Karama, up 35%, with 25% higher monthly payouts starting April 2025

  
  

These efforts aim to ease pressure on low-income families amid rising living costs.

3. Upgraded healthcare funding and access

Healthcare receives a strategic boost with allocations such as:

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  EGP 22 billion for medicines

  
  


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  EGP 15.1 billion for treatment of uninsured citizens

  
  


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  EGP 5.9 billion to expand health insurance for students, caregivers, and children

  
  

The budget reflects Egypt’s push toward equitable access to healthcare and stronger public medical infrastructure.

4. Better pay for public sector workers

To adjust for inflation and improve retention, public sector wages are set to rise. The budget allocates EGP 679.1 billion, an 18.1% increase, for salary adjustments effective July 1, 2025. This is one of the highest wage allocations in recent years and aims to maintain public service performance during challenging economic times.

5. Strong investment in economic production and exports

To drive economic growth, EGP 78.1 billion has been allocated for productive, export-oriented, and tourism-focused sectors — triple the funding from previous years. Highlights include:

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  EGP 8.3 billion for tourism development

  
  


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  EGP 5 billion to support key industrial sectors

  
  


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  EGP 3 billion to expand natural gas vehicle initiatives

  
  


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  Incentives for SMEs and young entrepreneurs totaling up to EGP 5 billion

  
  

6. Continued support for pensions and transportation

The state treasury will contribute EGP 227.1 billion to pension funds, strengthening long-term retirement support. Public transportation also gets attention, including:

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  EGP 5.2 billion for national railways

  
  


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  EGP 2.5 billion for urban transit in Cairo and Alexandria

  
  


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  EGP 1.8 billion for student transport subsidies

  
  

7. A long-term path toward stability

The budget aims to balance short-term relief with a long-term strategy for stability and reform. With rising revenues, focused spending, and gradual debt reduction, Egypt hopes to navigate global volatility while preparing for stronger, more sustainable growth.