Egypt has recorded a historic primary surplus of 330 billion Egyptian pounds in the first eight months of the 2024-2025 fiscal year, marking a significant financial milestone. The announcement was made during a high-level meeting between Prime Minister Moustafa Madbouly and Minister of Finance Ahmed Kouchouk on Tuesday. The meeting highlighted that the tax revenues soared by 38.4 per cent year-on-year, the highest growth rate in years, reflecting Egypt's commitment to fiscal discipline and economic stability. The government has also ramped up investments in critical sectors, with spending on healthcare and education rising by 29 per cent and 24 per cent, respectively, while allocations for social protection programs, including subsidies and grants, surged by 44 per cent. Prime Minister Madbouly emphasised the government's ongoing efforts to maintain financial discipline while prioritising spending on key sectors such as healthcare, education, and social protection to support economic growth and enhance public services. Minister Kouchouk highlighted improvements in debt management, noting a strategic redistribution of interest payments to ease financial burdens. He also pointed to a slowdown in treasury-funded investments as the government reassesses its priorities and streamlines public spending in accordance with fiscal limits. Looking ahead, the 2025-2026 budget will focus on economic expansion, job creation, and bolstering investor confidence. Key priorities include supporting productive sectors such as tourism and technology, maintaining financial stability, and securing energy resources. The government also aims to sustain the primary surplus while increasing spending on social protection programmes like Takaful and Karama. Additionally, Minister Kouchouk provided an update on Egypt's ongoing collaboration with the International Monetary Fund (IMF), confirming the approval of the fourth tranche of financial support and preparations for the fifth review. He also outlined a proposed strategy to reduce public sector debt, reinforcing Egypt's commitment to long-term fiscal sustainability. Attribution: Amwal Al Ghad English
