Egypt’s FY2025/2026 draft budget revenue expected to reach EGP3.1TN
Egyptian Cabinet approved the draft state budget for FY2025/2026 and agreed to forward it to the House of Representatives for parliamentary review.
During the meeting, Minister of Finance, Ahmed Kouchouk, presented the key highlights of the draft budget, noting that projected revenues stand at EGP 3.1 trillion, reflecting an annual growth rate of 19 %, while expenditures are expected to reach EGP 4.6 trillion, marking an 18 % increase.
During FY2025/2026, the government aims to achieve a primary surplus of EGP 795 billion, equivalent to 4 % of GDP, and reduce the debt-to-GDP ratio for general budget entities to 82.9 %.
The constitutional requirements for spending on education, health, and scientific research have been fully met, with EGP 679.1 billion allocated for public sector wages, reflecting an annual growth of 18.1 % to accommodate salary increases planned for implementation starting July 1, 2025.
The healthcare sector receives a substantial boost with EGP 22 billion allocated for medicines, EGP 12.4 billion for raw materials, EGP 11 billion for medical supplies, EGP 2.8 billion for maintenance of medical equipment, and EGP 5 billion for therapeutic medications and baby formula.
Additionally, EGP 15.1 billion has been earmarked for medical treatment at the government’s expense for low-income citizens without insurance, and EGP 5.9 billion for student insurance, coverage for female breadwinners and children, and the comprehensive health insurance program.
The budget allocates EGP 732.6 billion for subsidies, grants, and social benefits, up by 15.2 %, to ease financial burdens on citizens, especially vulnerable groups.
This includes EGP 160 billion for food subsidy programs, such as bread and ration cards, reflecting a 20 % annual increase.
The "Takaful and Karama" social pension program will also see a 35 % increase, bringing its total allocation to EGP 54 billion, allowing for a 25 % rise in monthly cash assistance starting April 2025.
Energy subsidies continue to be a key component, with EGP 75 billion allocated to petroleum subsidies and an additional EGP 75 billion for electricity support. The state will also spend EGP 3.5 billion on connecting natural gas to households.
Pension support will also increase, with the state treasury’s contribution to pension funds rising to EGP 227.1 billion.
Transport subsidies include EGP 5.2 billion for Egyptian National Railways, EGP 1.8 billion for student transport on trains and metro lines, and EGP 2.5 billion to support public transportation in Cairo and Alexandria.
To stimulate the economy and rebuild investor confidence, EGP 78.1 billion has been allocated to support productive, export-oriented, and tourism-related activities, a figure three times higher than previous years.
This includes EGP 8.3 billion for the tourism sector, EGP 5 billion for priority industrial sectors, and EGP 3 billion for the natural gas vehicle conversion initiative.
Small, medium, and micro enterprises will also benefit from EGP 3 to 5 billion in direct financial incentives, alongside EGP 1 billion for an initiative to provide natural gas-powered taxis and pickup trucks for youth entrepreneurs.
Kouchouk concluded by noting that the consolidated government budget—which includes both the state budget and economic authorities—projects revenues of EGP 7.2 trillion and expenditures of EGP 8.5 trillion.
The broader fiscal strategy aims to achieve a higher primary surplus for the general government and reduce the public debt-to-GDP ratio to below 92 %, reinforcing Egypt’s commitment to financial stability and sustainable development.