Egypt sets EGP 3.6T in financing needs for FY2025/26
Updated 4/16/2025 8:05:00 AM
Arab Finance: Egypt has raised its financing requirements for the upcoming fiscal year (FY) 2025/2026 to approximately EGP 3.6 trillion, marking a year-on-year (YoY) increase of nearly 25%, according to the draft general budget's analytical statement.
The increase aims to cover the widening budget deficit and scheduled debt repayments.
The move comes as the government accelerates fiscal consolidation efforts amid ongoing economic pressures, including a persistent USD shortage.
In parallel, the government plans to raise its tax revenue from goods and services by 34.4% YoY to EGP 1.103 trillion in the upcoming FY.
A major contributor will be value-added tax (VAT) revenues on domestic and imported goods, which are expected to jump by 50.2% to EGP 640.4 billion—an increase of EGP 214 billion over current FY 2024/2025 estimates.
This shift aligns with International Monetary Fund (IMF) recommendations, which suggest streamlining VAT exemptions. The government has identified 19 of the 58 current VAT exemptions that could be removed to boost revenue without raising the overall tax rate.
In support of the export sector, Egypt has also raised the budget allocation for the export subsidy program by 27%, bringing it to EGP 44.5 billion for FY 2025/2026.
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