Egypt’s Sisi urges debt cost cuts, tighter fiscal discipline, enhanced social justice

Egyptian President Abdel Fattah El-Sisi has stressed the importance of prioritising efforts to reduce debt service costs and to reinforce fiscal discipline in government actions. He said such measures would improve the economy’s performance and support development efforts.

During a meeting with Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk, Sisi called for effective partnerships between government bodies and the business community, and for adopting a balanced fiscal policy to drive growth and maintain financial stability.

The president directed continued work to achieve a primary surplus, along with higher spending on the Takaful and Karama Programme, as well as the health and education sectors and social protection schemes. He said this would ease burdens on citizens and strengthen social justice.

The meeting also reviewed preliminary financial indicators for fiscal year 2024/2025, which showed strong and balanced performance. A record primary surplus of about 629 billion Egyptian pounds, equal to 3.6 per cent of GDP, was achieved, marking an 80 per cent increase compared to the 350 billion pounds surplus of 2023/2024.

Finance Minister Kouchouk said the solid fiscal performance was realised despite external shocks, including a 60 per cent drop in Suez Canal revenues, which caused estimated losses of around 145 billion pounds against the budget target. He added that the strong performance was accompanied by improvements in economic indicators, with significant growth in private investment, manufacturing, and exports.

He also noted a 35 per cent surge in tax revenues, the highest in recent years, driven by new tax facilitation measures, a broader tax base, and improved confidence between the government and business community.

Kouchouk reviewed expenditure and revenue growth rates, saying total revenues grew by 29 per cent, while primary spending rose by 16.3 per cent. Tax revenues for 2024/2025 reached 2.204 trillion pounds, up 35.3 per cent from the previous fiscal year.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama

Subediting: Y.Yasser