Egypt Approves 2025/26 Draft Budget ... with Increase in Revenues, Expenditures

The Egyptian Cabinet approved the draft budget for the new fiscal year 2025/26, which targets revenues of EGP 3.1 trillion, an increase of 19%, compared to expenditures of EGP 4.6 trillion, an increase of 18%.

The draft budget aims to achieve a primary surplus of EGP 795 billion, equivalent to 4% of GDP, in addition to reducing the public sector's debt to 82.9%.

The Egyptian government allocated EGP 679.1 billion for public sector wages, an 18.1% annual increase, to accommodate the planned increases effective July 1. It also increased allocations for subsidies, grants, and social benefits to EGP 732.6 billion, an increase of 15.2%, as part of efforts to ease the burden on citizens and target vulnerable groups.

The budget includes EGP 160 billion to support food commodities and bread, representing a 20% annual growth. This is in addition to a 35% increase in the social security pension (Takaful and Karama) to EGP 54 billion, while accommodating a 25% increase in monthly cash assistance starting next April. 

Up to EGP 75 billion has also been allocated to support petroleum products, an additional EGP 75 billion to support electricity, and EGP 3.5 billion to support natural gas home connections.

Moreover, the government has allocated EGP 78.1 billion to support productive, export, and tourism activities, with the aim of driving economic growth and enhancing confidence in the Egyptian economy. This represents a three-fold increase in previous allocations. 

Also, EGP 8.3 billion has also been allocated to the tourism sector support initiative, EGP 5 billion to support priority industrial activities, EGP 3 billion to the initiative to convert vehicles to run on natural gas, in addition to cash incentives ranging from EGP 3 billion to EGP 5 billion to support small, medium, and micro enterprises (SMEs), and EGP 1 billion to the initiative to provide natural gas-powered taxis and pickup trucks for youth.

According to estimates, the general government budget aims to achieve revenues of approximately EGP 7.2 trillion, compared to expenditures of up to EGP 8.5 trillion, while working to reduce the general government debt to less than 92% of GDP.