Arab Finance: The Egyptian Cabinet approved the state budget for the fiscal year (FY) 2026/2027, which targets a 27.6% increase in public revenues to reach EGP 4 trillion and a 13.2% surge in expenditures to hit EGP 5.1 trillion, according to a statement.
Under the budget, the government plans to allocate EGP 832.3 billion for social protection, representing 12% annual growth, to support the people in need.
Minister of Finance Ahmed Kouchouk asserted that the new budget prioritizes the interests of citizens as well as investors and aims to drive economic activity. It also backs the health and education sectors, social protection, and exports.
He added that the government is committed to ensuring a flexible approach to any potential challenges or risks.
In line with the state’s four fiscal policy priorities, the state continues partnering with the business community to achieve a balance between financial discipline and boosting economic activity.
A total of EGP 90 billion has been earmarked within the budget for programs that promote economic activity, the minister pointed out.
Kouchouk highlighted that the government aims to achieve a primary surplus of EGP 1.2 trillion, representing 5% of gross domestic product (GDP), to provide additional funding for debt reduction and social protection.
The plan also targets lowering the overall budget deficit by around 1.2% to 4.9% of GDP by June 2027, while reducing the debt-to-GDP ratio to 78%.
On March 24th, President Abdel-Fattah El-Sisi reviewed the FY2026/2027 budget in a meeting with Prime Minister Moustafa Madbouly and Kouchouk.
