The increase, equivalent to EGP 380.3 billion, covers the period from July 2025 to February 2026.
Income tax revenues led the gains, rising 46.5 percent, or EGP 167.1 billion, to EGP 526.7 billion, driven by higher collections across categories.
Taxes on local wages increased 36.2 percent to about EGP 149.7 billion, while revenues from commercial and industrial activities by individuals rose 49.7 percent to EGP 69.9 billion. Taxes on non-commercial professions increased 46.9 percent to EGP 11.6 billion.
Corporate tax revenues rose 53 percent, or EGP 100.5 billion, to EGP 290.4 billion. This included a 67.5 percent increase in taxes from other companies to EGP 186.9 billion, and a 19.1 percent rise in Suez Canal-related taxes to EGP 69.4 billion.
Non-tax collections from sovereign entities increased by 161 percent year-on-year, or by EGP 599 million, to reach EGP 971 million.
While non-tax revenues from non-sovereign entities rose by around 40.7 percent, or EGP 166 million, reaching EGP 574 million.
Spending still on the rise
Despite stronger revenues, expenditure growth remained elevated. Total spending rose 28 percent year on year to EGP 2.95 trillion, compared with EGP 2.3 trillion in the same period a year earlier.
Interest payments increased 34.9 percent, or EGP 421.8 billion, to EGP 1.63 trillion, reflecting the cost of servicing debt.
As for revenues, the total budget revenues rose by 39.7 percent to around EGP 2.01 trillion during the July 2025 to February 2026 period.
The overall budget deficit recorded 4.6 percent of the total GDP during the seven months, compared to 4.8 percent at the same time during the previous year.
While the primary surplus increased to EGP 656.8 billion or 3.1 percent of the GDP, compared to EGP 330.1 billion of 1.8 percent during FY 2024/2025.
It’s worth noting that the state projected that total revenues would account for 15.3 percent of Egypt’s GDP, while total expenditures would take up 22.4 percent of the GDP for all of FY 2025/2026, as per the state-set budget for the year.
Wages and compensation rose 12.9 percent to EGP 430.7 billion, while spending on goods and services increased 21.6 percent to EGP 129.7 billion.
Subsidies, grants, and social benefits rose by 15.4 percent, or EGP 56.5 billion, to EGP 425 billion. The data includes an EGP 127,000 decrease in food subsidies, bringing total food subsidies to EGP 85.89 billion, and an EGP 5.2 billion increase in export subsidies, bringing total export subsidies to EGP 12 billion.
Spending also included an increase for cash transfer programmes, such as Takaful and Karama, bringing the total to EGP 31.6 billion. Additionally, treasury contributions to pensions rose by EGP 16.4 billion, bringing total spending on pensions to EGP 113.5 billion. Similarly, citizens’ medical treatment expenses rose by EGP 1.2 billion, with total spending reaching EGP 11.3 billion.
VAT maintains rise
Value-added tax (VAT) revenues also increased, rising 22.5 percent, or EGP 129.2 billion, to EGP 702.4 billion, supported by higher collections on goods and services.
VAT revenues from goods inched up by 14.2 percent, or EGP 46.6 billion, to reach a total of EGP 374.1 billion, on the back of a rise of EGP 19.2 billion in VAT on imported goods, making up a total of EGP 245.4 billion, and an increase in VAT on locally produced goods by EGP 27.4 billion, resulting in a total of EGP 128.7 billion.
Moreover, VAT revenues from services rose by 31.5 percent, or EGP 24.1 billion, with total revenues reaching EGP 100.8 billion. The rise included increases of EGP 17.8 billion from hotels and restaurants, which is EGP 28 billion in total, and EGP 1.2 billion from toll manufacturing services, to EGP 35.1 billion in total.
Similarly, international and domestic telecommunications services increased by 9.3 percent, or EGP 1.7 billion, reaching EGP 19.5 billion in total. Other services saw an EGP 3.4 billion increase, bringing total revenues up to EGP 18.1 billion.
Revenues from taxes on locally manufactured commodities rose by 44.3 percent, or EGP 44 billion, reaching up to EGP 143.2 billion in total. Development fees increased by 17.7 percent, or EGP 2.1 billion, reaching EGP 14.2 billion in total, while stamp tax revenues rose by 36.3 percent, or EGP 10 billion, to EGP 37.6 billion.
Taxes on the use of goods increased by 6 percent, or EGP 1.6 billion, reaching EGP 27.8 billion, and taxes on specific services rose by 21.4 percent, EGP 0.8 billion, to reach EGP 4.6 billion.
To add, property tax revenues rose by 27.7 percent, or EGP 58.7 billion, reaching EGP 270.8 billion in total, compared to around EGP 212 billion in the same period of the previous FY.
This increase was due to higher taxes on treasury bills or T-bills and bond yields’ payable interest, which inched up by 28 percent, or EGP 54.4 billion, reaching EGP 248.6 billion, as well as an increase in property tax on fees on cars by 16.8 percent, or EGP 1.8 billion, amounting to EGP 12.4 billion in total.
Taxes on international trade also rose by 13 percent, or EGP 10.3 billion, to EGP 89.5 billion. While other tax revenues rose by EGP 25.4 billion, amounting to EGP 25.4 billion, showing increased tax revenues from movable capital revenues transferred from the Central Bank of Egypt.
Non-tax revenues, which make up 19.9 percent of total revenues, increased by EGP 192.7 billion to reach EGP 400.8 billion. This was mainly due to a rise in grants by EGP 5.4 billion to reach EGP 9.9 billion, on the back of higher grants from government entities amounting to around EGP 8.3 billion.
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