Egypt’s Primary Budget Surplus Rises to EGP 601.9 Billion

The primary surplus in Egypt’s general state budget rose to EGP 601.9 billion, equivalent to 2.9% of gross domestic product (GDP), during the period from July to January of fiscal year 2025/26, compared with EGP 274.8 billion, or 1.5% of GDP, in the same period a year earlier, according to the Ministry of Finance.

In its latest report, the ministry said the overall budget deficit reached 880.8 billion pounds, representing 4.2% of GDP, compared with EGP 777.6 billion, or 4.4% of GDP, during the same period of the previous fiscal year.

The improvement in the primary surplus was driven mainly by a significant increase in tax revenues, which rose by 31.4% to reach EGP 1.407 trillion, compared with EGP 1.071 trillion in the same period last year.

The ministry attributed the growth to broad-based improvements across most tax categories, supported by stronger cooperation with the business community and the continued impact of recent tax reform packages.

The gains were particularly noticeable in income taxes and taxes on commercial and industrial activities. Authorities also pointed to incentives granted to small and medium-sized enterprises, as well as amendments to the value-added tax law, which helped expand the tax base and boost overall collections.

The ministry described the reforms as part of an ongoing and sustainable fiscal adjustment strategy aimed at strengthening public finances and supporting economic stability.