Egypt Reports LE 330 Billion Surplus Amid Significant Revenue Growth

Egypt has achieved a record primary surplus of LE 330 billion, with tax revenues increasing by 38.4 percent. Spending on health and education rose by 29 percent and 24 percent respectively, while social benefit allocations grew by 44 percent. Future budgets will focus on economic growth, job creation, enhanced social support, and fiscal sustainability, aligning with the IMF reform program.

Egypt has reported a record primary surplus of LE 330 billion from July 2024 to February 2025, as revealed by Finance Minister Ahmed Kouchouk. This notable fiscal achievement underscores the government’s commitment to enhancing financial stability and boosting revenue generation efforts.

During discussions with Prime Minister Mostafa Madbouly, Minister Kouchouk announced a significant 38.4 percent year-on-year increase in tax revenues, marking the highest growth rate in recent years. This revenue increase has enabled expanded spending in critical sectors such as health and education, with expenditures rising by 29 percent and 24 percent, respectively. Additionally, allocations for subsidies, grants, and social benefits surged by 44 percent, highlighting the government’s dedication to supporting vulnerable demographics.

Kouchouk also pointed out advancements in debt management, accomplished through improved scheduling of interest payment obligations throughout the fiscal year. Although the growth rate of treasury-funded investments has moderated, this aligns with the government’s strategic focus on prioritizing public expenditures. By adjusting investment strategies within the expenditure ceiling defined for the fiscal year, the government seeks to foster a sustainable financial future.

Looking forward, the FY2025/2026 budget will emphasize stimulating economic growth and job creation. The government plans to bolster confidence in the Egyptian economy by supporting productive sectors, alongside expanding tourism and technology industries. Furthermore, ensuring financial and economic stability is a priority, focusing on adhering to fiscal targets, reducing debt, securing energy resources, and fulfilling sector commitments.

Allocations for social protection and human development initiatives are also set to increase, ensuring ongoing support for vulnerable populations through programs like Takaful and Karama as well as enhancements in health and other social welfare initiatives.

Minister Kouchouk also provided an update on Egypt’s IMF reform program, reporting the approval of the fourth tranche disbursement and preparations for the fifth review. Moreover, he proposed measures to reduce the debt of budgetary institutions, further underscoring the government’s commitment to fiscal sustainability and long-term economic resilience.

With a balanced strategy that integrates economic growth, fiscal discipline, and expanded social support, Egypt’s financial plan for FY2025/2026 aims to ensure continued development while maintaining economic stability.

In conclusion, Egypt’s recent fiscal achievements, including a record primary surplus and significant revenue growth, demonstrate the government’s proactive measures to enhance financial stability. The focus on increased spending in education and health, along with social support for vulnerable groups, reflects a commitment to socio-economic development. The government’s strategic fiscal planning aims to stimulate economic growth while adhering to sustainability principles, reinforcing overall economic resilience.

Original Source: www.egypttoday.com