Cairo: The Cabinet approved the state budget for FY 2026/2027 after it was presented to President Abdel Fattah El Sisi. During a meeting chaired by Prime Minister Mostafa Madbouli, the Cabinet gave the green light to a comprehensive budget plan that integrates the budgets of 65 public economic authorities and endorses the economic and social development agenda for the upcoming fiscal year.

According to State Information Service Egypt, Finance Minister Ahmed Kouchouk highlighted that the new budget prioritizes both citizens and investors, aiming to boost economic activity significantly. The budget emphasizes spending on health, education, social protection, and support for production and exports. The government remains committed to implementing precautionary measures to address potential challenges or risks flexibly.

The minister outlined four key fiscal policy priorities, which align with an investment-driven economic path. These include fostering a continued partnership with the business community, balancing fiscal discipline with economic activity, improving government debt indicators, and creating additional space for spending focused on citizens. Kouchouk reported that the budget plans for a 27.6% increase in public revenues, targeting EGP 4 trillion, and a 13.2% rise in expenditures, reaching EGP 5.1 trillion. Additionally, EGP 832.3 billion is allocated for social protection programs, marking an annual growth of 12% to support vulnerable groups.

Kouchouk further noted that EGP 90 billion is earmarked for programs that support economic activity, with incentives linked to tangible outcomes. The budget aims for a primary surplus of EGP 1.2 trillion, which constitutes 5% of GDP, to facilitate additional allocations for debt reduction and social protection. The total deficit is expected to decrease by 1.2% of GDP to 4.9% by June 2027, while public debt is projected to reduce to 78% of GDP by the same date.