Egypt targets 19% increase in revenues in upcoming FY2025/26
Kouchouk made his remarks during the government’s weekly meeting on Wednesday, chaired by Prime Minister Mostafa Madbouly.
At this meeting, the Cabinet approved the draft budget for the upcoming fiscal year 2025/2026, which takes effect on 1 July, and decided to refer it to the House of Representatives.
The budget aims to achieve an initial surplus of EGP 795 billion, equivalent to 4 percent of the GDP, and to reduce the public sector debt to 82.9 percent.
The minister emphasized that the government is working on implementing the presidential directives to increase spending on health, education, and social protection and to support the productive and export sectors.
He also pointed out that the constitutional entitlement for spending on education, health, and scientific research has been met, with EGP 679.1 billion allocated for public sector wages, reflecting an 18.1 percent annual growth rate to accommodate the new increases scheduled for July.
EGP 22 billion has been allocated for medicines, EGP 12.4 billion for raw materials, EGP 11 billion for medical supplies, EGP 2.8 billion for medical equipment maintenance, and EGP 5 billion for therapeutic drugs and infant formula.
The state has allocated EGP 15.1 billion for treatment at its expense for citizens without insurance coverage and EGP 5.9 billion for health insurance for students, working women, and children, as well as comprehensive health insurance.
Kouchouk also highlighted that EGP 732.6 billion will be allocated toward social support, grants, and welfare programs, representing a 15.2 percent increase aimed at relieving the burden on citizens, with a focus on priority care groups.
This includes 1EGP 60 billion for subsidizing food commodities and bread, with an annual growth of 20 percent. Additionally, there will be a 35 percent increase in social security pensions (Takaful and Karama), reaching EGP 54 billion, to accommodate a 25 percent increase in monthly cash assistance starting in April.
EGP 75 billion will be allocated to support petroleum products, with an additional EGP 75 billion for electricity subsidies and EGP 3.5 billion for connecting natural gas to homes.
The minister further confirmed an increase in the government’s contribution to pension funds, which now stands at EGP 227.1 billion.
Furthermore, EGP 5.2 billion is designated for supporting the railway sector, EGP 1.8 billion for student subscriptions for trains and subways, and EGP 2.5 billion for public transportation in Cairo and Alexandria.
He explained that EGP 78.1 billion has been allocated to support productive, export, and tourism activities, stimulate growth, and strengthen confidence in the Egyptian economy, representing a threefold increase from previous years.
This includes EGP 8.3 billion for tourism sector support, EGP 5 billion for priority industrial activities, 3 billion EGP for converting vehicles to natural gas, EGP 3-5 billion in financial incentives for medium, small, and micro-enterprises, and 1 billion EGP for a project to provide natural gas-powered taxis and light trucks to young people.
Kouchouk also mentioned that the general government budget, which includes the state budget and public economic bodies, was presented with estimated revenues of EGP 7.2 trillion and expenditures of EGP 8.5 trillion. The government aims to achieve a higher primary surplus and is working to reduce the general government debt to below 92 percent of the GDP.