Egypt boosts social spending in 2026/27 budget, expands subsidy bill

Egypt’s draft fiscal year 2026/27 budget prioritises social protection and subsidies, with total allocations of 832.3 billion Egyptian pounds, Finance Minister Ahmed Kouchouk said on Saturday.

Kouchouk described the budget as a “security and protection” package for vulnerable groups, reflecting the government’s efforts to cushion households amid ongoing economic pressures.

Food subsidy spending was set at 175.3 billion pounds, up 10 per cent year-on-year, and will benefit more than 60 million citizens, he said.

Another 55.3 billion pounds was allocated to cash transfer programmes, including Takaful and Karama, social security schemes, child pensions, and rural outreach initiatives, covering more than 4.7 million families.

Electricity subsidies rose 39 per cent to 104.2 billion pounds in order to support the sector, address financial imbalances, ensure stable supply, and fundfor upgrades to transmission and distribution networks.

The budget also includes 13 billion pounds to support affordable housing for low- and middle-income households through utility subsidies, interest rate support, and direct cash assistance.

Kouchouk said 4.6 billion pounds had been allocated to the Urban Development Fund (UDF) to upgrade informal settlements and expand access to adequate housing.

He added that 69.1 billion pounds had been earmarked for local wheat procurement after the government raised purchase prices to 2,500 pounds per ardeb, aiming to boost domestic supply and reduce imports next year.

Attribution: Amwal Al Ghad English