The deficit, covering July 2025 to March 2026, compares with 6 percent in the same period a year earlier and 4.6 percent in the first eight months of the current fiscal year.
A primary surplus, which excludes debt servicing, rose to EGP 748.8 billion, or 3.5 percent of GDP, up from EGP 434.7 billion, or 2.4 percent, a year earlier.
The government’s full-year budget targets revenues at 15.3 percent of GDP and expenditure at 22.4 percent. For 2026/2027, total budget revenues are projected to rise by 27.6 percent to EGP 4 trillion, driven largely by a 27 percent increase in tax receipts.
Debt service remained a major burden, consuming about 81.8 percent of total revenues during the nine-month period.
Tax revenues rose 28.7 percent year on year to EGP 1.85 trillion, equivalent to 8.7 percent of GDP and 81.5 percent of total revenues. The increase, amounting to EGP 413.5 billion, was driven by gains across most categories.
Income tax revenues led the rise, increasing 45.2 percent, or EGP 188.5 billion, to EGP 605.5 billion. Taxes on local wages climbed 37.8 percent to EGP 175.8 billion, while revenues from commercial and industrial activities by individuals rose 56.8 percent to EGP 31.5 billion. Taxes on non-commercial professions increased 28.5 percent to EGP 14 billion.
Corporate tax revenues rose 48.7 percent, or EGP 105.7 billion, to EGP 322.5 billion. This included a 59.6 percent increase in taxes from other companies to EGP 207.4 billion, and a 21.1 percent rise in Suez Canal-related taxes to EGP 81 billion.
Non-tax revenues remained modest. Collections from sovereign entities rose 138.8 percent year on year, or EGP 579 million, to EGP 996 million, while revenues from non-sovereign entities increased by nearly 36 percent, or EGP 159 million, to EGP 601 million.
Spending maintains upward trend
Spending growth, however, continued to outpace revenue gains. Total expenditure rose 21.1 percent year on year to EGP 3.35 trillion, compared with EGP 2.76 trillion in the same period a year earlier.
Interest payments increased by 21.9 percent, or EGP 334.6 billion, to EGP 1.86 trillion, reflecting the rising cost of debt servicing.
Total revenues rose 35.1 percent to EGP 2.27 trillion over the nine-month period.
Wages and compensation increased 12 percent to EGP 482.7 billion, while spending on goods and services rose 19.8 percent to EGP 143.9 billion.
Subsidies, grants, and social benefits rose 19.2 percent, or EGP 78.8 billion, to EGP 488.4 billion. This included an increase of EGP 11.5 million in food subsidies, bringing the total to EGP 106.56 billion, and a rise of EGP 6 billion in export subsidies to EGP 13.3 billion.
Spending on cash transfer programmes, including Takaful and Karama, reached EGP 37.6 billion. Treasury contributions to pensions rose by EGP 21.6 billion to EGP 128.5 billion, while spending on medical treatment increased by EGP 0.9 billion to EGP 11.4 billion.
VAT still rising
Value-added tax (VAT) revenues continued to grow, rising 23 percent, or EGP 150.8 billion, to EGP 807 billion.
VAT on goods increased 12.2 percent, or EGP 45.7 billion, to EGP 419.2 billion, supported by a rise of EGP 15.8 billion in taxes on imported goods to EGP 273.5 billion, and an increase of EGP 29.9 billion on locally produced goods to EGP 145.7 billion.
VAT revenues from services rose 35.7 percent, or EGP 30.7 billion, to EGP 116.7 billion. This included a rise of EGP 19.4 billion from hotels and restaurants to EGP 31.3 billion, and an increase of EGP 2.7 billion from toll manufacturing services to EGP 40.1 billion.
Telecommunications services revenues increased by EGP 4.6 billion to EGP 24.7 billion, while other services rose by EGP 4 billion to EGP 20.5 billion.
Taxes on locally manufactured commodities rose 47.1 percent, or EGP 55.3 billion, to EGP 172.7 billion. Development fees increased 18.7 percent, or EGP 2.5 billion, to EGP 16 billion, while stamp taxes rose 32.3 percent, or EGP 10.5 billion, to EGP 43.1 billion.
Taxes on the use of goods rose 17.9 percent, or EGP 5.1 billion, to EGP 33.9 billion, while taxes on specific services increased 21.2 percent, or EGP 1 billion, to EGP 5.5 billion.
Property tax revenues rose 18 percent, or EGP 47.8 billion, to EGP 313.9 billion, supported by higher taxes on treasury bills (T-bills) and bond yields, which increased 17.8 percent, or EGP 43.8 billion, to EGP 289.3 billion. Taxes on car licences rose 18.1 percent, or EGP 2.2 billion, to EGP 14.2 billion.
Taxes on international trade increased 12.5 percent, or EGP 11.4 billion, to EGP 102.6 billion.
Other tax revenues rose to EGP 25.4 billion, highlighting increased tax revenues from movable capital revenues transferred from the Central Bank of Egypt (CBE).
Non-tax revenues, which account for 18.5 percent of total revenues, rose by EGP 177.9 billion to EGP 422.4 billion, driven mainly by a rise in grants of EGP 6.1 billion to EGP 11.7 billion, on the back of higher grants from government entities amounting to around EGP 10.1 billion.
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