Egypt Targets Higher Revenues in 2026/27 Budget, Finance Min. Says

Egypt’s Finance Minister Ahmed Kouchouk said that the draft budget for the 2026/2027 fiscal year is designed to meet citizens’ basic needs, improve public services and support economic activity.

In his address to Parliament, Kouchouk said projected public revenues are expected to reach 4 trillion Egyptian pounds ($), marking a 30% increase, while total expenditures are estimated at 5.1 trillion pounds, up 13.2%.

The minister explained that the government is taking steps to manage current and potential risks by increasing general reserves and reallocating spending based on priorities.

"Fiscal policy will focus on supporting citizens, strengthening financial stability, boosting economic growth and enhancing confidence within the business community."

Kouchouk continued: "80 billion pounds have been earmarked for programs aimed at stimulating production, manufacturing, entrepreneurship and exports of both goods and services. This includes 48 billion pounds for export subsidy repayments, 6.7 billion pounds to support the tourism sector and 6 billion pounds in financing facilities for productive industries."

He also said 90.5 billion pounds have been allocated to the Unified Procurement Authority, with an annual growth rate of 34.6%, to ensure the availability of medicines and medical supplies.

In the education sector, 7.8 billion pounds have been set aside for printing pre-university textbooks and 7 billion pounds for school feeding programs.

The draft budget allocates 821 billion pounds for public sector wages and 832.3 billion pounds for subsidies and social protection. This includes 178.3 billion pounds for food subsidies and 55.3 billion pounds for programs such as Takaful and Karama, social security pensions, child benefits and rural female health worker initiatives.

Kouchouk said 120 billion pounds have been designated for energy subsidies and settling intersectoral obligations, alongside 13 billion pounds for housing for low- and middle-income groups and 4.3 billion pounds for slum development.

The government has also allocated 69.1 billion pounds to finance the purchase of local wheat from farmers after raising the procurement price to 2,500 pounds per ardeb during the current season.

On fiscal targets, the minister said the government aims to achieve a primary surplus of 5%, reduce the overall budget deficit to 4.9% of gross domestic product (GDP), and lower the debt-to-GDP ratio to 78% by June 2027. He added that Egypt plans to cut external debt by $1–2 billion annually.