Cairo: Dr. Mostafa Madbouly, Prime Minister, met today at the government headquarters in the New Administrative Capital with Mr. Ahmed Kouchok, Minister of Finance, to review several financial performance indicators, in the presence of Mr. Yasser Sobhi, Deputy Minister of Finance, Mr. Magdy Mahfouz, Head of the Finance Sector at the Ministry of Finance, and Mr. Walid Abdullah, Head of the Public Budget Sector at the Ministry of Finance.
According to State Information Service Egypt, the Prime Minister began the meeting by noting the government’s continued efforts to achieve financial discipline, increase spending in the health and education sectors, and enhance allocations for social protection programmes. He explained that today’s meeting aims to present several important indicators related to financial performance for the period from July 2024 to February 2025, as well as key indicators for the new fiscal year’s budget.
During the meeting, the Minister of Finance reviewed the most important financial results for the period from July 2024 to February 2025, indicating that this period witnessed the highest primary surplus value, reaching approximately 330 billion Egyptian pounds. Tax revenues increased by 38.4% year-on-year, the highest annual growth rate achieved in years.
The minister pointed out that during this period, debt management improved by distributing the burden of interest payments over the fiscal year. The growth rate of treasury-funded investments also slowed, in light of the state’s approach to prioritising spending and reviewing the public investment plan while adhering to the investment spending ceiling for the current fiscal year.
Mr. Ahmed Kouchok clarified that spending on the health and education sectors during this period increased by 29% and 24% respectively compared to the same period of the previous fiscal year. Additionally, spending on subsidies, grants, and social benefits jumped by 44% during the period from July 2024 to February 2025.
During the meeting, the Minister of Finance outlined the main themes and priorities of the budget for the upcoming fiscal year 2025-2026, noting that the first theme is to drive growth and economic activity and create job opportunities, particularly through bolstering confidence in the Egyptian economy, supporting productive sectors, as well as the tourism and technology sectors, maintaining financial and economic stability through adherence to financial targets, reducing debt and its burdens, securing energy sources, meeting sector obligations, and continuing to increase allocations directed towards social protection, human development, and support programmes for priority groups.
In this context, the minister presented the key financial targets for the new fiscal year’s budget, indicating the aim to continue achieving a primary surplus, increasing tax revenues, and raising spending on the Takaful and Karama programmes, as well as health sectors or any other social protection programmes.
During the meeting, Mr. Ahmed Kouchok presented an overview of the follow-up on the implementation of the International Monetary Fund programme reforms and approval for the disbursement of the fourth tranche, as well as preparation for the fifth review. The minister also presented a proposal to reduce the debt of budgetary entities.