Interest payments increased by around 40.8 percent, or EGP 430.2 billion, to EGP 1.48 trillion year-on-year. This increase demonstrates the ongoing effects of high borrowing costs.
Total expenditures rose by 29.5 percent compared to the same period of the previous fiscal year, reaching EGP 2.6 trillion.
Moreover, workers’ wages and employee compensation increased by 10.6 percent to reach EGP 371.1 billion, while purchases of goods and services also rose, reaching EGP 111.4 billion.
Subsidies, grants, and social benefits rose by 11.5 percent to EGP 372.6 billion. The increase includes a EGP 3.66 billion decrease in food subsidies, bringing total food subsidies to EGP 73.6 billion, and an EGP 4.2 billion increase in export subsidies, bringing total export subsidies to EGP 10.6 billion.
Spending also included EGP 2.8 billion for cash transfer programmes, such as Takaful and Karama, bringing the total to EGP 25.8 billion. In addition, treasury contributions to pensions accounted for EGP 8.5 billion in spending, bringing total spending on pensions to EGP 102.6 billion. Similarly, EGP 2.3 billion was spent on citizens’ medical treatment, with total spending reaching EGP 9.8 billion.
As for revenues, the total budget revenues rose by 41 percent to around EGP 1.77 trillion during the July 2025 to January 2026 period.
Tax revenues increase
Tax revenues increased by 31.4 percent, or EGP 336.3 billion, reaching EGP 1.4 trillion, compared to the same time period last year.
Furthermore, non-tax collections from sovereign entities decreased by 66 percent, or EGP 247 million, reaching EGP 123 million.
On the other hand, non-tax revenues from non-sovereign entities rose by 36.6 percent, or EGP 128 million, reaching EGP 478 million.
Meanwhile, income tax revenues increased by 47 percent, or EGP 146 billion, reaching EGP 456.6 billion, driven by higher collections across most income tax categories.
Revenues from income tax on local wages rose by 39 percent, or EGP 34.7 billion, reaching around EGP 123.4 billion. Tax revenues from commercial and industrial activities increased by 49.5 percent, or EGP 19.7 billion, reaching EGP 59.4 billion. Revenues from non-commercial professions rose by 48 percent, or EGP 3.1 billion, to reach EGP 9.4 billion.
Corporate tax revenues maintained an upward trajectory, rising by 51.7 percent, EGP 89 billion, to reach EGP 260.8 billion. The rise included a 68 percent increase, or EGP 68.2 billion, in taxes from other companies, bringing the total to EGP 168.4 billion. It also included a 20.5 percent increase, or EGP 10.6 billion, in taxes from the Suez Canal, with total taxes amounting to EGP 62.2 billion.
VAT is also on the rise
Value-added tax (VAT) revenues increased by 23.8 percent, or EGP 116.5 billion, reaching a total of EGP 606 billion, driven mainly by higher collections on goods and services.
VAT revenues from goods inched up by 15 percent, or EGP 42.7 billion, to reach a total of EGP 327.3 billion. This included an increase of EGP 18.9 billion in VAT on imported goods, resulting in a total of EGP 215.4 billion, and an increase of EGP 23.8 billion in VAT on locally produced goods, resulting in a total of EGP 112 billion.
VAT revenues from services rose by 41.7 percent, or EGP 25.3 billion, with total revenues reaching EGP 86.2 billion. The rise included increases of EGP 14.2 billion from hotels and restaurants, EGP 22.5 billion in total, and EGP 3.9 billion from toll manufacturing services, EGP 30.8 billion in total. Similarly, international and domestic telecommunications services increased by 38.6 percent, or EGP 4.5 billion, reaching EGP 16.1 billion in total. Other services saw an EGP 2.8 billion increase, bringing total revenues to EGP 16.7 billion.
Revenues from taxes on locally manufactured commodities rose by 40 percent, or EGP 34.4 billion, reaching EGP 120.4 billion in total. Development fees increased by 23.2 percent, or EGP 2.4 billion, reaching EGP 12.5 billion in total, while stamp tax revenues rose by 11.8 percent, or EGP 2.7 billion, to EGP 25.5 billion.
Taxes on the use of goods increased by 11.8 percent, or EGP 2.7 billion, reaching EGP 25.5 billion, and taxes on specific services rose by 23.6 percent, EGP 0.8 billion, to reach EGP 4 billion.
Property tax revenues rose by 29.9 percent, or EGP 56.8 billion, reaching EGP 247 billion in total, compared to around EGP 190.2 billion in the same period of the previous fiscal year.
Moreover, this increase was due to higher taxes on treasury bills and bond yields, which inched up by 30.3 percent, or EGP 52.9 billion, reaching EGP 227.3 billion, as well as an increase in car taxes by 20.3 percent, or EGP 1.8 billion, amounting to EGP 10.9 billion in total.
Taxes on international trade also increased by 20.3 percent, or EGP 4.2 billion, to EGP 78.2 billion. Other tax revenues amounted to EGP 20 billion, reflecting increased revenues from movable capital transferred from the Central Bank of Egypt.
Non-tax revenues, which make up 20.8 percent of total revenues, rose by EGP 180.7 billion to reach EGP 369 billion. This increase was mainly driven by a rise in grants from EGP 4.7 billion to EGP 8.5 billion, on the back of higher grants from government entities amounting to around EGP 7.9 billion.
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