Details of Egypt's budget for the next fiscal year: Growth and support for citizens
Key features of Egypt's upcoming budget
Egyptian Finance Minister Ahmed Kouchouk announced the key features of Egypt's budget for the upcoming fiscal year (2026/2027). This budget comes at a crucial time, aiming to achieve public revenues of 4 trillion Egyptian pounds, a 27.6% increase compared to the previous year. Conversely, public expenditures are projected to reach 5.1 trillion Egyptian pounds, representing a growth rate of 13.2%. These figures reflect a clear government commitment to striking a balance between fiscal discipline and meeting the basic needs of citizens.
General context and historical background of the Egyptian economy
The Egyptian economy is undergoing a delicate phase of structural reforms that began in 2016 in cooperation with the International Monetary Fund. Over the past few years, the country has faced compounded challenges, including the COVID-19 pandemic and the economic repercussions of the Russian-Ukrainian war, which severely impacted global supply chains and commodity prices. More recently, geopolitical tensions in the Middle East, particularly in the Red Sea, have negatively affected Suez Canal revenues, a major source of foreign currency. Therefore, the new budget represents a serious attempt to mitigate these shocks through flexible fiscal policies focused on boosting domestic production and reducing reliance on imports.
Managing risks and economic repercussions
During his press conference, Minister Ahmed Kouchouk confirmed that the government has decided to increase the size and percentage of reserves in the new budget for the 2026/2027 fiscal year. This proactive measure aims to effectively address current and potential risks, taking into account the exceptional regional challenges and their associated difficult economic repercussions. The budget also includes additional allocations to alleviate the cost of living for low- and middle-income earners, as well as support for certain investor categories to stimulate production and improve the quality of public services.
Top priority for the health and education sectors
One of the most prominent features of the new budget is the strong focus on investing in human capital. Kojok explained that the health budget will see a 30% increase, while the education budget will rise by 20%, rates exceeding the overall public spending growth rate of 13.5%. In this context, 90.5 billion Egyptian pounds have been allocated to the Unified Procurement Authority, representing a 25% annual increase, to ensure the availability of medicines and medical supplies. An additional 47.5 billion Egyptian pounds have been allocated for state-funded treatment and support for health insurance, reflecting a 69% increase, with the necessary funding provided for the implementation of the comprehensive health insurance system in Minya Governorate. In the education sector, 7.8 billion Egyptian pounds have been allocated for printing textbooks, and 7 billion Egyptian pounds for school feeding programs.
Enhancing investment opportunities and partnerships with the private sector
The Egyptian government recognizes that sustainable growth requires active participation from the private sector. Therefore, the new budget prioritizes investment opportunities and strengthens partnerships with the business community as a cornerstone. Through these partnerships, the government aims to achieve an economic growth rate of 5.4%, which will positively impact job creation and improve living standards, while also directing further investments toward infrastructure development across all governorates.
The importance of the budget and its expected impact
Domestically, this budget is expected to contribute to improving social safety nets and enhancing essential services for Egyptian citizens. Regionally, Egypt's economic stability strengthens the stability of the region as a whole, given its status as a major demographic and economic power. Internationally, Egypt's commitment to fiscal reform and achieving positive growth rates sends reassuring signals to credit rating agencies and foreign investors, boosting foreign direct investment inflows and supporting macroeconomic stability.
