Egypt’s cabinet has approved a $91 billion (EGP4.6 trillion) budget for the 2025/26 financial year, set to begin in July, as the country continues efforts to stabilize its finances under an International Monetary Fund (IMF) program.
Budget’s target
The country planned the 18% increase in spending partly to assist vulnerable groups as it recovers from a major economic crisis. It is also partly driven by high inflation, which stood at 12.8% in February.
Egypt’s 2025/26 budget also projects revenues rising 19% to EGP 3.1 trillion, aiming for a primary surplus of EGP 795 billion, representing 4% of gross domestic product (GDP) and reducing debt to 82.9% of GDP.
A major share of spending is allocated to healthcare, education, and social protection, following presidential directives.
Egyptian Prime Minister Mostafa Madbouly said if the influence of external factors is neutralized, the Egyptian economy will see a big boom, and growth rates may reach more than 6%.
“We have worked on implementing the presidential directives to increase budget spending on health, education, social protection, and support for production and export sectors,” according to Minister of Finance Ahmed Kouchouk.
Budget allocations
The 2025-26 budget includes EGP 697.1 billion for state employee wages, an 18.1% increase, while social security pension funding will rise by 35% to EGP 54 billion.
The draft budget allocates significant funds across various sectors. In the health sector, EGP 22 billion is designated for medicines, EGP 12.4 billion for raw materials, EGP 11 billion for medical supplies, EGP 2.8 billion for medical equipment maintenance, and EGP 5 billion for therapeutic drugs and infant formula.
Additionally, EGP 15.1 billion is allocated for state-funded treatment for low-income citizens without insurance coverage, while EGP 5.9 billion is dedicated to health insurance for students, single mothers, and children.
The draft also increases the state’s contribution to pension funds to EGP 227.1 billion. The total spending on subsidies, grants, and social benefits is set to reach EGP 732.6 billion, a 15.2% increase. This includes a 20% rise in subsidies for commodities and bread, totaling EGP 160 billion. Further, EGP 75 billion is earmarked for petroleum product subsidies, EGP 75 billion for electricity subsidies, EGP 3.5 billion for subsidizing natural gas deliveries to households, and EGP 5 billion for priority industrial activities.
The tourism sector will receive EGP 8.3 billion, and EGP 78.1 billion is allocated to support productive, export, and tourism activities, aiming to drive growth and boost confidence in the Egyptian economy—a threefold increase compared to previous allocations.
In transport, the budget allocates EGP 5.2 billion for the railway, EGP 1.8 billion for student subscriptions on trains and metro, and EGP 2.5 billion for passenger transport in Cairo and Alexandria. Additionally, EGP 3 billion is set aside for the initiative to convert vehicles to natural gas, along with EGP 1 billion for providing natural gas-powered taxis and pickup trucks to young people.
