Egypt eyes 5.4% growth, EGP1.2t primary surplus in FY2026–27 budget
Egypt aims to achieve 5.4 per cent economic growth and a primary surplus of 1.2 trillion Egyptian pounds under the fiscal policy framework for the 2026–2027 budget, while allocating 90 billion Egyptian pounds to support economic activity.
President Abdel Fattah El-Sisi reviewed these short and medium-term fiscal policy priorities during a meeting with Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk on Thursday.
The meeting covered targets for growth, expenditures, and revenues, alongside efforts to achieve fiscal balance amid rising regional challenges and their economic impact. To strengthen resilience, the president stressed the need to continue comprehensive institutional reform to ensure fiscal discipline and sound governance by rationalising public spending, enhancing revenues, and reducing government debt.
The government plans to establish a new partnership with the business community to enhance confidence, improve services, and provide clearer visibility, alongside implementing targeted tax and customs facilitation measures. This includes expanding the tax base through higher compliance without imposing additional burdens on citizens or businesses.
Fiscal policy will maintain a balance between supporting growth, boosting the competitiveness of the Egyptian economy, and preserving fiscal discipline, while targeting stable inflation and continuing energy subsidies. The government is also proceeding with reforms to ensure financial and economic stability and to stimulate private sector growth, supporting production, manufacturing, and exports through investment-friendly fiscal policies and tax, customs, and real estate facilitation.
Debt service indicators are expected to improve significantly, with a continued decline in the debt-to-GDP ratio according to the Finance Minister. The framework also includes increased allocations for health and education, higher wages for teachers, and real wage increases for state employees linked to performance and exceeding inflation.
Discussions further covered proposals for wage increases and policies aimed at reducing budget sector debt and lowering debt servicing costs, in addition to measures to drive higher growth, boost goods and services exports, and increase productivity.
The president underscored the importance of attracting more local and foreign investment and maintaining direct engagement with global investors while clearly communicating Egypt’s economic measures to contain regional impacts.
Attribution: Amwal Al Ghad English