Egypt targets three new state offerings before june
Finance Minister Ahmed Kouchouk announced that the government is working to lower external debt service for budget entities to 14.5 percent of total expenditure in the 2026/2027 fiscal year, compared with 17.8 percent in the current fiscal year. The plan also includes reducing the outstanding external debt balance to around $77.5 billion, as part of ongoing efforts to enhance fiscal sustainability and strengthen public finances.
During a press conference today, Kouchouk said the government intends to complete three new state asset offerings before the end of next June, a move aimed at advancing the state privatization program and stimulating investment activity in the market.
On fiscal performance, the minister expects the overall budget deficit to reach approximately 6.1 percent of GDP in the current fiscal year, before declining to 4.9 percent in the next fiscal year. In the first nine months of the current year, the deficit stood at about 5.2 percent, equivalent to nearly LE 1.28 trillion.
Kouchouk also highlighted that Egypt achieved a primary surplus of LE 749 billion during the same period, representing 3.5 percent of GDP. This improvement was supported by a 35 percent increase in total government revenues and a 29 percent rise in tax revenues, which climbed to roughly LE 1.8 trillion.
The primary surplus, calculated as the difference between government revenues and expenditures excluding interest payments, is widely viewed as a key measure of fiscal discipline. It indicates the government’s ability to finance its core spending from its own resources and reflects its capacity to gradually reduce public debt over time.
The minister noted that the draft 2026/2027 budget is based on an assumed oil price of $75 per barrel, emphasizing that the government does not target a fixed exchange rate. Instead, projections are built on prevailing market averages, particularly the exchange rate recorded in February.
Looking ahead, the government is targeting an increase in tax revenues of about LE 745 billion in the next fiscal year, representing a 27 percent growth rate, with the objective of strengthening state resources without imposing additional financial burdens on citizens or businesses.
Kouchouk further stressed that the upcoming budget carries the theme of “security and protection” for vulnerable groups. Total allocations for subsidies and social protection programs are set to reach LE 832.3 billion, reflecting an annual increase of 12 percent.
Within these allocations, around LE 175.3 billion has been designated for food subsidy programs benefiting more than 60 million citizens, while LE 55.3 billion will support programs such as Takaful and Karama, social security, child allowances, and rural women support initiatives, reaching approximately 4.7 million families.
The budget also earmarks LE 104.2 billion to support the electricity sector—an annual increase of 39 percent, to enhance service quality and address financial imbalances. In addition, LE 13 billion has been allocated for housing programs targeting low- and middle-income households, alongside LE 4.6 billion for the Urban Development Fund to accelerate the redevelopment of informal areas.