Egypt has recorded a primary surplus of EGP 330bn for the first half (H1) of the fiscal year 2024/25, marking its highest surplus to date, according to Minister of Finance Ahmed Kouchouk. This achievement reflects strong financial performance, bolstered by a 38.4% year-on-year increase in tax revenues, the highest growth rate in years. Prime Minister Mostafa Madbouly met with Kouchouk on Tuesday at the government headquarters in the New Administrative Capital to review key financial performance indicators from July 2024 to February 2025. The Prime Minister emphasized the government's commitment to financial discipline, alongside increased spending in key sectors such as healthcare and education, and greater allocations for social protection programs. Kouchouk detailed that the government has focused on improving debt management, particularly through better distribution of interest payment obligations, and controlling treasury-funded investments. The minister also highlighted a 29% rise in healthcare spending and a 24% increase in education spending compared to the previous fiscal year. Additionally, subsidies, grants, and social benefits saw a 44% surge. The discussion also focused on the government's priorities for the 2025-2026 fiscal year, which include stimulating economic growth, creating job opportunities, and supporting key sectors like tourism and technology. The government aims to maintain financial stability by adhering to fiscal targets, reducing debt burdens, and boosting investments in social protection programs. Kouchouk also provided an update on Egypt's progress under the International Monetary Fund (IMF) reform program, noting the approval of the fourth tranche and preparations for the fifth review. He further proposed measures to reduce the budget sector's debt in the coming fiscal year.
