Photo courtesy of the Ministry of Planning and Economic Development
The government is planning to hike funding allocations for healthcare support by 25 percent in the upcoming fiscal year, alongside other allocations for utilities, such as drinking water and sanitation, which will increase by 22 percent, and social housing allocation will increase by 21 percent, Rostom said.
While pre-university and technical education allocation will rise by 11.5 percent, higher education allocation will increase by 11 percent.
These figures were released during the minister’s presentation of the draft plan for the upcoming fiscal year and the medium-term plan for 2029/30 during the Senate’s plenary session.
The extra funding aims to increase sustainable growth, achieving balance and equitable distribution of investments between providing support for fields in the private sector and for social protection measures, the minister said.
Furthermore, it will guarantee quality education, increase the number of hospital beds and health units, while also providing job opportunities for the youth.
During last week’s cabinet presser, Prime Minister Mostafa Madbouly confirmed that the new state budget will allocate EGP 90 billion to programmes that support economic activity, with around EGP 48 billion going toward export subsidies for goods and services.
This comes as Egypt prioritizes improving social services for its citizens at a time when regional conflict continues to impact the global economy, increasing inflation, currency pressures, high commodity prices, and supply chain disruption.
Deciding to expand investments in human development is a major theme for the government’s economic plan and is part of the Decent Life initiative.
The efforts also follow the objectives for the country’s International Monetary Fund (IMF)-supported programme, which considers that macroeconomic stabilization must also include efforts to protect the most vulnerable and support the middle and the lower classes by prioritizing preserving fiscal space for critical social spending for targeted protection.
Investment budget breakdown
The state announced in April that the total investment for the FY 2026/27 budget is projected to be EGP 3.7 trillion. Around EGP 2.2 trillion will be allocated for private investments, which makes up 59 percent of the total investment budget, Rostom confirmed. While the other EGP 1.5 trillion pounds will be allocated for public investments, which make up 41 percent of total investments.
The investment-to-GDP ratio will be at 17 percent for the next FY, but will rise to 20 percent by the end of the medium-term plan during FY 2028/2029.
Moreover, expanding private sector participation is one of the main policies for the new fiscal year budget and is part of the IMF-funded Extended Fund Facility (EFF) loan programme.
The Fund is reviewing the pace of reforms implemented by Egypt amid regional tensions, which have heightened risks and disruptions for the country and could worsen Egypt’s external balances, increase capital outflows and external financing needs, as well as raise borrowing costs.
The IMF staff is currently in Cairo to conduct the seventh review of Egypt’s Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF).
Upon completion on 15 June, the reviews can potentially unlock around $1.6 billion in new financing for Egypt.
The IMF projected a 4.7 percent GDP growth rate for FY2025/26, which ends on 30 June, maintaining a positive growth forecast for Egypt, as the country’s economy remains resilient to shocks.
It’s worth noting that as of the first quarter of 2026, the Central Bank of Egypt (CBE) estimated that real GDP growth is at around 4.9 percent, but the bank adjusted its forecast downward to match the IMF’s prediction in the current FY, due to tighter monetary policies.
It is expected to reach 4.8 percent in FY 2026/27. This is compared to a previous estimate of 5.1 percent and 5.5 percent, respectively.
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