The Egyptian Council of Ministers approved the draft state budget for the 2026/2027 fiscal year on Thursday, March 26, which forecasts a 27.6% increase in government revenue, according to an official statement released in Cairo.
According to the Council of Ministers’ statement, the government anticipates a 27.6% increase in government revenue, expected to reach 4 trillion Egyptian pounds, while spending is projected to rise by 13.2%, reaching 5.1 trillion Egyptian pounds.
The budget aims to reduce the overall deficit by approximately 1.2% of GDP, to 4.9% by June 2027, according to the same source.
The government also aims to reduce the debt-to-GDP ratio to 78% by June 2027.
The new budget includes a 12% increase in social welfare spending, bringing it to 832.3 billion Egyptian pounds. 90 billion Egyptian pounds will be allocated to programs supporting economic activity.
The government also aims to generate a primary surplus of 1.2 trillion Egyptian pounds, or 5% of the gross domestic product. A primary surplus occurs when total revenue exceeds total public expenditure, excluding debt interest payments.
Finance Minister Ahmed Kouchouk emphasized that this new budget “is geared towards citizens and investors” and aims to stimulate economic activity.
Kouchouk added that the health, education, and social protection sectors, as well as support for production and exports, are among the top priorities for public spending.
The Egyptian minister affirmed that “the government remains committed to adopting risk management and hedging mechanisms to flexibly address potential global or domestic economic challenges,” according to the statement.
AK/Sf/fss/as/APA