Egypt has earmarked EGP 80bn in its draft FY2026/27 budget to strengthen production, manufacturing, entrepreneurship, and exports, Finance Minister Ahmed Kouchouk announced while presenting the budget’s financial statement to parliament. The allocation reflects the government’s effort to support productive sectors and improve Egypt’s competitiveness in goods and services exports. It also signals a broader fiscal strategy aimed at balancing social protection, public service delivery, and economic growth.
Budget Prioritises Production and Export Growth
The new funding package includes EGP 48bn for export rebate programmes, making export support one of the largest components of the allocation. A further EGP 6.7bn has been directed to the tourism sector, while EGP 6bn will provide financing facilities for productive activities. These measures are intended to encourage investment, expand industrial output, and help businesses navigate operating pressures.
Kouchouk said the FY2026/27 budget targets public revenues of EGP 4trn, representing an estimated 30% increase. Total expenditures are projected to reach EGP 5.1trn, up 13.2% from the previous fiscal year. He said the budget was designed to meet citizens’ basic needs, enhance public services, and support wider economic activity.
Fiscal Policy Focuses on Stability and Investor Confidence
The Finance Minister said the government is increasing general reserves to address existing and potential economic risks. He added that public spending is being redirected toward national priorities, with fiscal policy focused on protecting citizens while maintaining financial discipline. The approach is also intended to strengthen investor confidence and improve the business environment.
The budget includes EGP 90.5bn for the Unified Procurement Authority, marking a 34.6% annual increase. This funding will support the availability of medicines and medical supplies across the healthcare system. The government has also allocated EGP 7.8bn for pre-university textbook printing and EGP 7bn for school nutrition programmes.
Social Protection and Public Wages Receive Major Allocations
Public sector wages are set to receive EGP 821bn under the draft budget. Subsidies and social protection programmes have been allocated EGP 832.3bn, reflecting continued emphasis on supporting lower-income households. This includes EGP 178.3bn for food subsidies and EGP 55.3bn for programmes such as Takaful and Karama, social security, child allowances, and assistance for rural women.
Energy support and measures to address structural imbalances have been allocated EGP 120bn. The government said this funding aims to ensure reliable service delivery while managing pressures in key public utilities. Housing programmes for low- and middle-income groups will receive EGP 13bn, while EGP 4.3bn has been set aside for informal area development.
Wheat Procurement and Debt Reduction Targets
The draft budget allocates EGP 69.1bn to finance the purchase of locally produced wheat from farmers. This follows an increase in the procurement price to EGP 2,500 per ardeb for the current season. The measure is aimed at supporting farmers while strengthening domestic food security.
On fiscal performance, Kouchouk said the government aims to achieve a primary surplus of 5%. The overall budget deficit is targeted to decline to 4.9% of GDP, while the debt-to-GDP ratio is expected to fall to 78% by June 2027. External debt is projected to decrease by between $1bn and $2bn annually.
Medium-Term Fiscal Outlook
The government is also working to reduce the financing needs of the budget sector to around 10% of GDP over the medium term. Debt service costs are targeted to fall to nearly 35% of total expenditure. These goals form part of a broader plan to ease pressure on public finances and create more room for development spending.
The FY2026/27 draft budget presents a mix of growth-oriented spending, social protection, and fiscal consolidation targets. By allocating EGP 80bn to production, exports, tourism, entrepreneurship, and financing facilities, the government is seeking to stimulate private-sector activity while preserving core public services. The effectiveness of the budget will depend on implementation, export performance, investor response, and the state’s ability to manage debt and subsidy pressures.