2026-2027 budget aims to boost citizens, investors, economic growth
As global energy costs surge and fiscal pressures mount amid the US-Israel-Iran tensions, Egypt is once again turning to consumption controls, a politically sensitive but economically necessary strategy to stabilise public finances.
At a cabinet meeting on Saturday, Prime Minister Moustafa Madbouli unveiled a new set of measures aimed at rationalising the use of oil products and electricity, designed to curb spending, boost efficiency, and ensure the sustainability of the nation’s energy system.
Key decisions include a complete slowdown of major diesel-intensive projects for two months and allowing state employees to work remotely one day per week. Madbouli highlighted the sharp rise in Egypt’s petroleum import bill, which jumped from $1.2 billion in January to $2.5 billion in March, while stressing that maintaining production and operational levels in factories nationwide remains a top priority.
Despite the mounting pressures, the prime minister stressed that the new state budget prioritises citizens, investment, production, and the private sector. He also outlined a series of measures to manage inflation and protect household purchasing power.
Meanwhile, Planning and Economic Development Minister Ahmed Rostom said the government is targeting an investment rate of 17 per cent of gross domestic product (GDP) in the next fiscal year, underscoring a continued focus on long-term economic growth even amid immediate fiscal constraints.
During the cabinet meeting, Minister of Finance Ahmed Kouchouk has unveiled the state general budget for the 2026-2027 fiscal year, describing it as strategically designed to support both citizens and investors while stimulating national economic activity.
Kouchouk asserted that healthcare, education, and social protection, alongside measures to promote production and exports, remain the government’s top spending priorities.
The upcoming budget targets a 27.6% increase in public revenues, aiming to reach approximately LE4 trillion. Public expenditures are projected to rise by 13.2%, totaling LE5.1 trillion.
A substantial portion of spending is allocated to social safety nets, with LE832.3 billion earmarked for social protection, representing a 12% year-on-year growth in funding to support Egypt’s most vulnerable groups.
The prime minister affirmed that the upcoming increase in the minimum wage will be the largest in Egypt’s history, implemented in line with the directives of President Abdel Fattah El Sisi.
