Egypt’s Cabinet approves FY2025/26 draft budget with EGP 3.1T in revenues
Updated 3/27/2025 9:25:00 AM
Arab Finance: The Egyptian Cabinet at its latest meeting, chaired by Prime Minister Mostafa Madbouly, approved the draft budget for fiscal year (FY) 2025/2026, with revenues estimated at EGP 3.1 trillion, marking an annual growth rate of 19%, as per an official statement.
During the meeting, Minister of Finance Ahmed Kouchouk stated that the budget targets expenditures of up to EGP 4.6 trillion in the upcoming fiscal year, up by 18%.
Under the draft budget, Egypt aims to achieve a primary surplus of EGP 795 billion, equivalent to 4% of the gross domestic product (GDP), in addition to reducing the public sector's debt to 82.9%, the minister added.
Kouchouk noted that the government allocated EGP 679.1 billion for public sector wages, marking an annual surge of 18.1%, to accommodate the planned increases effective July 1st.
A total of EGP 22 billion has been allocated for medicine, with EGP 12.4 billion for pharmaceutical raw materials and EGP 11 billion for medical supplies, he continued.
In line with the state’s efforts to ease the burden on citizens, the government increased allocations by 15.2% for subsidies, grants, and social benefits to EGP 732.6 billion in FY2025/2026.
The new budget also includes EGP 160 billion to support food commodities and bread, with an annual growth of 20%. This is in addition to a 35% increase in the Takaful and Karama program to EGP 54 billion, while accommodating a 25% increase in monthly cash assistance starting next April.
Kouchouk also announced that a sum of EGP 75 billion has been dedicated to support petroleum products, with additional EGP 75 billion to improve electricity, as well as EGP 3.5 billion to bolster natural gas delivery to household.
Moreover, the government has allocated EGP 78.1 billion to support productive, export, and tourism activities to drive economic growth. This represents a three-fold hike from previous years.
It also earmarked EGP 8.3 billion to promote the tourism sector and EGP 5 billion for priority industrial activities, in addition to EGP 3 billion to the initiative to convert vehicles to run on natural gas.
Cash incentives ranging from EGP 3 billion to EGP 5 billion will be directed to foster small, medium, and micro enterprises (SMEs), while EGP 1 billion will be utilized to offer natural gas-powered taxis and pickup trucks for youth.
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