Egypt has earmarked EGP 80 billion (US$1.6bn) in its fiscal year 2026/27 budget to support production, manufacturing, entrepreneurship and exports as part of a broader push to strengthen economic growth and stabilise public finances, the finance minister said on Tuesday.
Finance Minister Ahmed Kouchouk said the allocation is designed to improve industrial output, enhance competitiveness and expand export capacity in goods and services. The package includes EGP 48 billion (US$960m) for export rebate schemes, EGP 6.7 billion for tourism support and EGP 6 billion in financing facilities for productive sectors.
Presenting the draft budget statement to parliament, Kouchouk said targeted public revenues are projected at EGP 4 trillion, a 30 percent increase, while total expenditure is expected to reach EGP 5.1 trillion, up 13.2 percent. He said the fiscal framework is intended to balance citizens’ needs with economic stabilisation and growth objectives.
“The budget is designed to meet citizens’ basic needs, improve public services and support economic activity,” Kouchouk told lawmakers, adding that the government is also strengthening reserves and reallocating spending to align with national priorities.
A key focus of the plan is reducing fiscal vulnerabilities while maintaining support for essential sectors. The minister said the government is increasing the size and share of general reserves to address both current and potential economic risks.
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Significant allocations were also made to social and infrastructure spending. The Unified Procurement Authority will receive EGP 90.5 billion, a 34.6 percent increase, to secure medicines and medical supplies. Education-related spending includes EGP 7.8 billion for printing pre-university textbooks and EGP 7 billion for school nutrition programmes.
Wage and social protection spending remains a major component of the budget, with EGP 821 billion allocated for public sector salaries and EGP 832.3 billion for subsidies and social programmes. This includes EGP 178.3 billion for food subsidies and EGP 55.3 billion for cash transfer schemes such as Takaful and Karama, as well as social security and child support programmes.
Energy subsidies have been set at EGP 120 billion, while EGP 13 billion is allocated for housing for low- and middle-income groups and EGP 4.3 billion for upgrading informal settlements.
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In support of agriculture, the government has earmarked EGP 69.1 billion for the procurement of locally produced wheat, following an increase in the purchasing price to EGP 2,500 per ardeb this season.
Kouchouk said the fiscal strategy aims to gradually reduce the budget deficit to 4.9 percent of GDP and achieve a primary surplus of 5 percent by June 2027. The debt-to-GDP ratio is targeted to fall to 78 percent, while external debt is expected to decline by $1 billion to US$2 billion annually.
The government also plans to reduce overall financing needs for the budget sector to around 10 percent of GDP over the medium term and lower debt servicing costs to about 35 percent of total expenditure.
Officials say the measures are part of broader efforts to strengthen investor confidence, improve macroeconomic stability and support Egypt’s export-led growth strategy amid ongoing global economic uncertainty.
