The Cabinet, chaired by Prime Minister Moustafa Madbouli, approved on Thursday the state budget for fiscal year (FY) 2026/2027. The move follows its presentation to President Abdel Fattah El-Sisi. The budget includes linking the finances of 65 economic public authorities.
The Cabinet also approved the economic and social development plan for the same FY.
Finance Minister Ahmed Kouchouk said the new budget supports citizens and investors and aims to boost economic activity.
He added that health, education, social protection, and support for production and exports are top spending priorities.
He noted that the government is committed to precautionary measures to handle potential risks.
The minister said fiscal policy has four main priorities aligned with an investment-driven growth path. He stressed continued partnership with the business community. He highlighted efforts to balance fiscal discipline with economic expansion. He also pointed to improving debt indicators and creating more space for citizen-focused spending.
Kouchouk said revenues are expected to rise by 27.6% to EGP 4 trillion. Expenditure is projected to increase by 13.2% to EGP 5.1 trillion. He added that EGP 832.3 billion is allocated for social protection, up 12% annually, to support vulnerable groups.
He noted that EGP 90 billion is earmarked for programmes supporting economic activity.
The government, the minister further noted, targets a primary surplus of EGP 1.2 trillion, or 5% of GDP, to help reduce debt and fund social spending. It also aims to cut the overall deficit to 4.9% of GDP by June 2027, and reduce budget sector debt to 78% of GDP by the same date.
