Presenting the financial statement before the House of Representatives, Kouchouk stated that the government aims to collect EGP 2.6 trillion in tax revenues without imposing new burdens on citizens.
Finance Minister, Ahmed Kouchouk, announced that the new state budget for FY2025/2026 projects a 23% increase in total public revenues, reaching EGP 3.1 trillion, while public expenditures are expected to grow by 19.2% to EGP 4.6 trillion.
Presenting the financial statement before the House of Representatives, Kouchouk stated that the government aims to collect EGP 2.6 trillion in tax revenues without imposing new burdens on citizens.
This will be achieved by enforcing existing tax facilitation laws and introducing new simplifications within the customs and real estate tax systems.
The ministry also plans to simplify procedures, enhance digital systems, and foster a true partnership with taxpayers to expand the tax base and attract new contributors. The government targets gradually increasing the tax-to-GDP ratio to 13%, which would be the highest in a decade.
For the upcoming fiscal year, the Ministry of Finance is aiming for a primary surplus of EGP 708 billion, equivalent to 4% of GDP, and plans to reduce the overall budget deficit to 7.3% by the end of June 2026.
The budget is being prepared and executed using a program and performance approach that ties government spending to the quality of services delivered to citizens.
A total of EGP 742.5 billion has been allocated to social protection programs in the new budget, marking an annual growth rate of 16.8%. This includes EGP 160 billion for food subsidies (up 19%), EGP 150 billion for fuel and electricity subsidies to ensure energy availability, and EGP 54 billion for the Takaful and Karama social protection program (up 35%).
Health-related allocations include EGP 45 billion for medicines and medical supplies (up 26%), and EGP 15.1 billion to fund medical treatments for low-income citizens at the state’s expense (up 50%).
Additional allocations include EGP 27 billion for services like sanitation and waste management (up 35%), EGP 227 billion in contributions to pension funds, and EGP 13.6 billion for low-income housing support (up 14.3%).
The government also earmarked EGP 3.5 billion to expand residential natural gas connections, EGP 5.2 billion for the railway sector, EGP 1.8 billion to cover student and metro subscriptions, and EGP 2.5 billion to support public transport in Cairo and Alexandria.
Kouchouk confirmed that the draft budget fulfills the constitutional spending requirements for health and education. He described the new budget as a budget of growth, stability, and partnership with the business community.
For the health sector, EGP 617.9 billion has been allocated for FY2025/2026. This includes a 50% increase in funding for state-covered medical treatment, bringing the total to EGP 15.1 billion, and a 26% increase in allocations for medications and medical supplies, totaling EGP 45 billion.
The budget also designates EGP 684.7 billion for pre-university education, EGP 358.2 billion for higher education, and more than EGP 173 billion for scientific research.
