The Ministry of Finance said spending on wages and employee compensation increased by 11.5%, or LE60.9 billion, during the July-May period of FY2025/26, reaching LE589.9 billion, compared with LE529 billion in the same period a year earlier.
In a statement on Friday, the ministry said interest payments rose to LE2.118 trillion from LE1.764 trillion, reflecting ongoing debt management efforts and the diversification of financing sources.
Spending on goods and services increased by LE36.4 billion to LE183.7 billion, while expenditure on subsidies, grants and social benefits climbed 12.9% to LE661.9 billion.
Spending on export subsidies rose by LE11.4 billion to LE22.4 billion.
Cash transfers under the Takaful and Karama social protection programme increased by LE8 billion to LE47 billion, while state contributions to pension funds rose by LE11.7 billion to LE152.5 billion. Healthcare spending reached LE14.3 billion.
Capital expenditure on non-financial assets increased by LE87 billion to LE320.6 billion, marking a return to historical investment levels after the exceptional FY2024/25, during which public spending declined.
The ministry reaffirmed its commitment to maintaining the LE1.2 trillion ceiling for public investments set in the FY2025/26 budget.
Total government expenditure rose by 18.8%, or LE642.2 billion, to LE4.05 trillion during the July-May period, compared with LE3.408 trillion in the corresponding period of the previous fiscal year.
