Egypt’s debt servicing costs have also consumed nearly 71.2 percent of total revenues during the first 11 months of fiscal year 2025/2026, according to the report. Monthly servicing costs declined from 76 percent during the first 10 months of FY 2025/2026 and from 81.8 percent during the first nine months of FY2025/2026.

Meanwhile, the overall budget deficit for the period July 2025 to May 2026 narrowed by EGP 51 million or 1.2 percent to record 5.3 percent, compared to 6.5 percent recorded during the same period a year earlier. It remained the same, however, as during the first ten months of the current fiscal year.

A primary surplus, which excludes debt servicing, rose to EGP 985.1 billion, or 4.6 percent of GDP, up from EGP 580.4 billion, or 3.2 percent, a year earlier. It also increased by around EGP 88.1 billion from EGP 897 billion, or 4.2 percent of GDP, during the first nine months.

According to the International Monetary Fund (IMF), Egypt’s primary surplus is expected to rise from 4.8 percent of GDP to five percent in the current FY2026/2027.

The IMF Executive Board approved Egypt’s seventh review under its Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF) last week, unlocking $1.77 billion in fresh financing.

This comes as Egypt's economy remains resilient despite uneven structural reform efforts and economic spillovers from the escalating regional conflict between the US and Iran, as well as the recent drone attack on two vessels in Damietta port last week, causing a fire.

It's worth noting that the government’s budget for the full FY 2026/2027, which started on 1 July, projects the GDP growth to record 5.4 percent or EGP 24.5 trillion.

The budget also targets revenues to reach 15.3 percent of GDP and expenditure at 22.4 percent. Total budget revenues are projected to rise by 27.6 percent from the previous fiscal year to EGP 4.1 trillion, driven largely by a 27 percent increase in tax receipts. Public expenditures are set to rise by 13 percent to EGP 5.2 trillion. 

During the first eleven months of FY 2025/2026, total revenues rose by 32.5 percent or EGP 730.2 billion to almost EGP 3 trillion, compared to EGP 2.24 trillion during the same time the year before and increased from nearly EGP 2.7 trillion during the first 10 months of the fiscal year.

Spending still growing 
 

Egypt’s spending is still surpassing its revenue gains. Total expenditures surged by 18.8 percent year-on-year to EGP 4.05 trillion, compared to EGP 3.4 trillion during the same time period the year before and EGP 3.73 trillion during the first ten months of the current fiscal year.

Interest payments jumped by 20 percent year-on-year, or EGP 353.5 billion, to EGP 2.12 trillion, compared to EGP 1.76 trillion the year before, reflecting efforts to diversify financing and debt management. This is also a slight increase from the EGP 2.02 trillion recorded during the first ten months of the year.

Wages and compensation increased around 11.5 percent to EGP 589.9 billion, while spending on goods and services rose 24.7 percent to EGP 183.7 billion.

Subsidies, grants, and social benefits increased 12.9 percent, or EGP 75.8 billion, to EGP 661.9 billion. This included an increase of EGP 16 million in food subsidies, bringing the total to EGP 189.5 billion, and a rise of EGP 11.4 billion in export subsidies to EGP 22.4 billion.

Spending on cash transfer programmes, including Takaful and Karama, reached EGP 46.9 billion. Treasury contributions to pensions rose by EGP 11.7 billion to EGP 152.5 billion, while spending on medical treatment increased by EGP 2.2 billion to EGP 14.3 billion.

Taxes on the rise
 

Tax revenues rose by 27.5 percent year-on-year, or EGP 536.3 billion, to almost EGP 2.5 trillion, taking up 11.7 percent of the GDP, rising also from EGP 2.21 trillion or 10.4 percent of GDP during the ten months of the fiscal year. The increase was driven by tax incentives leading to gains across most categories.

Tax revenues also took up 83.6 percent of total revenues.

​Income tax revenues led the rise, increasing 34.4 percent, or EGP 242.9 billion, to EGP 949.6 billion, on the back of higher collection across categories.

Taxes on local wages climbed 31.5 percent to EGP 222.9 billion, while revenues from commercial and industrial activities by individuals rose 31.2 percent to EGP 159 billion. Taxes on non-commercial professions increased 44.4 percent to EGP 20.5 billion.

Corporate tax revenues rose 37.2 percent, or EGP 145.3 billion, to EGP 536 billion. This included a 38.1 percent increase in taxes from other companies to EGP 396.1 billion, and a 20.3 percent rise in Suez Canal-related taxes to EGP 100.7 billion.

Non-tax revenues also increased to almost EGP 489 billion, with collections from sovereign entities rising by EGP 1.93 billion year on year to EGP 2.41 billion, while revenues from non-sovereign entities rose by nearly 3.3 percent, or EGP 26 million, to EGP 757 million.

VAT keeping upward streak
 

Value-added tax (VAT) revenues continued to grow, rising 24.3 percent year-on-year, or EGP 200.1 billion, to EGP 1.02 trillion, also up from EGP 907 billion during the first ten months of the fiscal year.

VAT on goods increased 11.4 percent, or EGP 53.1 billion, to EGP 518.7 billion, supported by a rise of EGP 17 billion in taxes on imported goods to EGP 337.1 billion, and an increase of EGP 36.1 billion on locally produced goods to EGP 181.6 billion.

VAT revenues from services rose nearly 43 percent, or EGP 44.3 billion, to EGP 147.6 billion. This included a rise of EGP 25 billion from hotels and restaurants to EGP 39.4 billion, and an increase of EGP 6.6 billion from toll manufacturing services to EGP 52.5 billion.

Telecommunications services revenues increased by EGP 9.1 billion to EGP 32.5 billion, while other services rose by EGP 3.6 billion to EGP 23.2 billion.

Taxes on locally manufactured commodities rose 49.2 percent, or EGP 71.4 billion, to EGP 216.6 billion. Development fees increased 17.6 percent, or EGP 2.9 billion, to EGP 19.3 billion, while stamp taxes rose 44.9 percent, or EGP 22.4 billion, to EGP 72.3 billion.

Taxes on the use of goods rose 10.9 percent, or EGP 4.2 billion, to EGP 42.6 billion, while taxes on specific services increased 27.8 percent, or EGP 1.7 billion, to EGP 7.6 billion.

Property tax revenues rose 20.1 percent, or EGP 60.7 billion, to EGP 362.6 billion, supported by higher taxes on treasury bills (T-bills) and bond yields, which increased 20 percent, or EGP 55.5 billion, to EGP 332.7 billion. Taxes on car licences rose 21 percent, or EGP 3.1 billion, to EGP 17.8 billion.

Taxes on international trade increased 16.4 percent, or EGP 17.7 billion, to EGP 125.7 billion.

Other tax revenues remained the same compared to the first ten months of the fiscal year, at EGP 25.4 billion, due to increased tax revenues from movable capital revenues transferred from the Central Bank of Egypt (CBE). 

Non-tax revenues, which account for 16.4 percent of total revenues, rose by EGP 193.9 billion to EGP 488.7 billion, driven mainly by an increase in grants of EGP 5.6 billion to EGP 15.1 billion, supported by higher grants from government entities of around EGP 11.9 billion and grants from foreign governments of EGP 2.4 billion.