Egypt cabinet approves 2026/2027 Budget

Ahram Online , Friday 27 Mar 2026

Egypt’s cabinet, chaired by Prime Minister Mostafa Madbouly, approved the state budget for the 2026/2027 fiscal year on Thursday following a review by President Abdel-Fattah El-Sisi.

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The budget includes the financing plans for 65 public economic authorities and aligns with the country’s economic and social development plan for the year.

Finance Minister Ahmed Kouchouk said the new budget prioritizes citizens and investors while supporting economic activity.

“Health, education, social protection, and support for production and exports are at the forefront of public spending,” Kouchouk said, noting that the government remains committed to mechanisms that allow flexibility in addressing potential challenges or risks.

The minister outlined four key fiscal policy priorities designed to complement Egypt’s investment-driven economic path.

He stressed ongoing collaboration with the business community to balance fiscal discipline with economic growth, improve all government debt indicators, and create additional space for spending on citizen-centred initiatives.

Kouchouk detailed that the budget targets a 27.6 percent increase in general revenues, reaching EGP 4 trillion, alongside a 13.2 percent rise in expenditures to EGP 5.1 trillion.

Social protection spending is set at EGP 832.3 billion, growing 12 percent annually to support the country’s most vulnerable groups.

The budget also allocates EGP 90 billion to programmes that support economic activity, with incentives tied to tangible on-the-ground results.

The government aims for a primary surplus of EGP 1.2 trillion, equivalent to 5 percent of GDP, to provide additional funding for debt reduction and social protection.

The budget targets cutting the fiscal deficit to 4.9 percent of GDP by June 2027—a reduction of about 1.2 percentage points—while lowering public debt to roughly 78 percent of GDP.

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