President discusses priorities of FY 2026/27 budget
President Abdel Fattah El Sisi reviewed priorities of the government’s fiscal policy for the FY 2026/2027 budget, during a meeting on Tuesday with Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk.
The discussions focused on short- and medium-term fiscal frameworks, including plans to build a new partnership with the business community to enhance confidence, improve services, and ensure policy clarity, said Presidency Spokesman Mohamed El-Shennawy.
The government also aims to carry out targeted tax and customs facilitation measures, while expanding the tax base through higher compliance-without imposing new burdens on citizens or businesses, he added.
During the meeting, Finance Minister Kouchouk outlined key targets, including achieving economic growth of 5.4 per cent, stabilising inflation, and allocating LE90 billion to support economic activities linked to measurable outcomes.
The plan also includes continued energy subsidies and a primary surplus of LE1.2 trillion, besides improvements in debt service indicators and a continued decline in the debt-to-GDP ratio, the minister added.
Spending priorities include significant rise in health and education budgets, higher wages for teachers, and real wage growth for public sector employees tied to performance and exceeding inflation rates.
In addition, the meeting reviewed broader fiscal targets, including revenues, expenditures, and efforts to maintain financial balance amid rising regional challenges.
The government reaffirmed its commitment to structural reforms aimed at ensuring economic stability, boosting private sector growth, and supporting production, manufacturing, and exports through investment-friendly policies.
Discussions further addressed proposals for wage rises, debt reduction strategies, and measures to drive higher growth, including expanding research and development spending and strengthening exports as a key engine of growth, Spokesman El-Shennawy said.
President Sisi stressed the need to carry on with comprehensive institutional reforms to ensure fiscal discipline, good governance, and reduced public debt, while enhancing the economy’s resilience.
He also underscored the importance of intensifying efforts to attract both domestic and foreign investment and maintaining direct engagement with global investors to present Egypt’s economic policies and mitigate the impact of regional challenges.
