Egypt’s Parliament has given final approval to the government’s state budget and economic and social development plan for the 2026/2027 fiscal year, with authorities targeting stronger growth, higher revenues and a reduction in the country’s debt burden.
The approved budget sets government revenue targets at 4.1 trillion Egyptian pounds (US$82.4 billion), representing annual growth of 32 percent, while total expenditure is projected at 5.2 trillion pounds, an increase of 13 percent compared with the previous fiscal year.
Finance Minister Ahmed Kouchouk said the budget was designed to balance economic expansion with fiscal discipline, focusing on boosting production, increasing exports and improving living standards for citizens.
Speaking during a parliamentary session, Kouchouk described the budget as an ambitious but balanced framework developed after consultations with lawmakers and other stakeholders.
He said the government would continue pursuing prudent fiscal management while maintaining sufficient reserves to manage potential economic risks and ensure the continued financing of essential public services.
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Human development remains a major priority in the new spending plan, with increased allocations for health and education.
Health sector funding will rise by 30 percent, while education spending will increase by 20 percent, according to the finance minister.
The budget allocates 90.5 billion Egyptian pounds to the Egyptian Authority for Unified Procurement (UPA) to support the supply of medicines and medical equipment, marking a 34.6 percent annual increase.
Additional allocations include 7.8 billion pounds for printing pre-university textbooks and 7 billion pounds for school feeding programmes.
The government has also earmarked 822.8 billion pounds for public sector wages, with salary increases expected to take effect in July payrolls.
Spending on subsidies and social protection programmes will rise to 836.8 billion pounds, an annual increase of 13 percent.
The allocation includes 178.3 billion pounds for food subsidies and 55.3 billion pounds for social support programmes, including the Takaful and Karama cash transfer initiative, child pensions and support programmes for rural women leaders.
The budget also directs funds towards strategic sectors, including energy, housing and agriculture.
A total of 120 billion pounds has been allocated to support the energy sector and settle outstanding obligations, while 13 billion pounds will support housing programmes for low- and middle-income citizens.
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Another 4.3 billion pounds has been set aside for the development of informal settlements.
The government will spend 69.1 billion pounds on purchasing locally produced wheat from farmers after increasing the procurement price to 2,500 pounds per ardeb during the current harvest season.
On the economic side, Kouchouk said Egypt would continue strengthening private sector partnerships and introducing tax, customs and real estate incentives aimed at making investment procedures easier.
To support industrial activity and exports, the budget includes 80 billion pounds for programmes targeting manufacturing, production, entrepreneurship and export development.
This includes 48 billion pounds for export support, 6.7 billion pounds for tourism incentives and 6 billion pounds in financing facilities for productive industries.
The government is targeting a primary budget surplus of 5 percent of gross domestic product (GDP) during FY2026/27 while reducing the overall budget deficit to 4.9 percent.
As part of its medium-term fiscal strategy, Egypt aims to reduce the debt-to-GDP ratio to 78 percent by June 2027.
Authorities also plan to cut external debt by around US$1 billion to US$2 billion annually, reduce government financing needs by approximately 10 percent of GDP over the medium term and lower debt servicing costs to about 35 percent of total budget expenditure.
The new budget comes as Egypt continues efforts to strengthen fiscal stability, attract investment and support economic growth amid ongoing global economic pressures.
