Egypt’s Ministry of Finance has presented its financial statement for the FY 2025/2026 , revealing a series of promising fiscal ratios and strategic goals. These figures reflect a positive trajectory for Egypt’s public finances, highlighting increased revenues, tax reforms, and a focus on efficiency in public spending.
23% Increase in Public Revenues: A Strong Growth Signal
The 2025/2026 budget proposal sets the stage for a significant 23% rise in public revenues, bringing the total to a projected 3.1 trillion EGP. This substantial increase underscores a robust recovery in Egypt’s revenue-generating capacity, driven by a combination of economic reforms, expanding tax compliance, and strategic facilitation measures in key sectors such as customs and real estate.
For financial analysts, this growth is a clear indicator of the government’s ability to increase its fiscal receipts without placing undue burden on citizens. The focus on incentivizing tax compliance and leveraging digital solutions promises to enhance revenue collection while maintaining a favorable environment for businesses.
Targeted 2.6 Trillion EGP in Tax Revenues: A Strong Foundation
Perhaps most notable is the government’s target of 2.6 trillion EGP in tax revenues for the upcoming fiscal year, a significant portion of which will be generated through tax reforms that streamline the system and attract new taxpayers. By activating tax incentives and easing customs processes, Egypt is positioning itself for continued fiscal health without introducing new taxes.
This positive outlook is further bolstered by the government’s ambitious plan to increase tax revenues as a percentage of Gross Domestic Product (GDP). With the tax-to-GDP ratio expected to reach an impressive 13% by next year, this would mark the highest level in a decade. For analysts, this represents a solid foundation for future fiscal sustainability and growth, reflecting the government’s success in expanding the tax base while keeping the system accessible and efficient.
807 Billion EGP Primary Surplus: A Strong Indicator of Fiscal Health
Another standout achievement in the 2025/2026 budget is the forecasted primary surplus of 807 billion EGP, equating to 4% of GDP. This surplus, which is a key measure of a nation’s fiscal health, demonstrates Egypt’s capacity to generate revenue that exceeds its non-interest expenditures. A positive primary surplus is a critical step toward achieving long-term fiscal sustainability and shows that the country is in a strong position to service its debt obligations while still pursuing development goals.
The ability to generate a primary surplus of this magnitude reflects sound fiscal management and a commitment to controlling expenditures, making Egypt an attractive prospect for investors and international financial institutions. It also signals that the government is well on track to meet its fiscal targets and avoid any disruptive fiscal imbalances.
Fiscal Deficit Reduction Target of 7.3%: A Step Toward Long-Term Stability
The government is also targeting a reduction in the overall fiscal deficit to 7.3% of GDP by the end of June 2026. This goal reflects a positive trend toward fiscal discipline and sustainable public finances. The targeted decrease in the deficit demonstrates Egypt’s commitment to narrowing the gap between government expenditures and revenues, further enhancing investor confidence.
This target is a key indicator that Egypt is taking decisive steps to bring its fiscal policy in line with international standards. Reducing the deficit will contribute to the country’s economic stability, improve investor sentiment, and pave the way for future growth.
