Egypt Achieves 3.1 Percent Primary Surplus Highest Since 2005

Finance Minister Ahmed Kouchouk announced that Egypt’s state budget recorded a 3.1 percent primary surplus during the period from July to May — the highest since 2005 — despite notable revenue losses from the Suez Canal and the energy sector.

Kouchouk emphasized that Egypt’s economy is showing clear signs of improvement, with the private sector playing a leading role in the recovery. Over the past ten months, the private sector accounted for 60 percent of total investments, underscoring its growing contribution to national development.

The Minister reaffirmed the government’s commitment to achieving its fiscal targets, even after absorbing a loss of LE 110 billion in Suez Canal revenues and allocating an additional LE 150 billion in support of the energy sector.

He also revealed that Egypt recorded its highest tax revenues in years — a 38 percent increase — without introducing new financial burdens on citizens. Robust performance was noted across several sectors, including tourism, non-oil manufacturing, and information and communications technology (ICT), especially during the first half of the fiscal year.

On the social spending front, the Minister reported that healthcare spending rose by an average of 27 percent, while education expenditure increased by 23 percent over the ten-month period. Allocations for subsidized goods reached LE 95 billion, reflecting a 37 percent annual increase. The Takaful and Karama social protection program received LE 30 billion in funding, up 24 percent year-on-year.

Additional fiscal support included LE 11 billion for state-funded medical treatment — an annual increase of 35 percent — and LE 8 billion to support industrial production, which grew by 128 percent. Export support allocations totaled approximately LE 15 billion.

Regarding debt management, Kouchouk stated that Egypt’s external debt tied to the state budget decreased by $2 billion over the past ten months. The average maturity of the debt was extended to 1.8 years as of December 2024.

He concluded by highlighting the surge in remittances from Egyptians abroad, which reached $26.4 billion between July and March — an increase of 82.7 percent compared to the same period the previous year, offering a significant boost to Egypt’s foreign currency reserves.