Economy Egypt unveils $91bn budget amid IMF reform pressure By Reuters March 27, 2025, 10:04 AM Unsplash/AXP Photography A street in Cairo. Egypt's 2025/26 budget allows for expenditure increases of almost 20 percent Egypt’s cabinet approved an EGP4.6 trillion ($91 billion) draft state budget for the 2025/26 financial year that will begin in July, a government statement said on Wednesday, as it continues to tighten its finances under an International Monetary Fund programme. Expenditures will rise by 18 percent and revenue by 19 percent over the current 2024/25 budget. Revenue is expected to hit EGP3.1 trillion, working out to a deficit of about EGP1.5 trillion ($30 billion). The increased expenditure partly reflects elevated headline inflation, which was running at an annual 12.8 percent in February. Financial reforms under an $8 billion financial reform programme signed in March 2024 with the IMF have helped Egypt bring inflation down from a peak of 38 percent in September 2023. The IMF this month approved the disbursement of $1.2 billion to Egypt after its fourth review of the programme. The new budget targets a primary surplus of EGP795 billion, equal to 4 percent of GDP, up from the 3.5 percent primary surplus originally targeted in the 2024/25 budget. The IMF granted the government a waiver in the fourth review after the surplus came in 0.5 percent of GDP lower than Egypt’s earlier commitment. Egypt partners with IFC for airport privatisation Egypt poised to receive more EU funding this year China to invest in solar panel glass production in Egypt In its third review in June, the IMF praised Egypt for its “strict control of spending”. The new budget also lowers public debt to 82.9 percent of GDP from an expected 92 percent in 2024/25, the cabinet statement said. The cabinet said EGP732.6 billion in spending in the new budget would be allocated for subsidies, grants and social benefits, an increase of 15.2 percent. The budget increases commodities and bread subsidies by 20 percent to EGP160 billion. It will also include EGP75 billion to subsidise petroleum products, EGP75 billion to subsidise electricity and EGP3.5 billion to subsidise natural gas deliveries to households, the statement added. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
