Egypt achieved a primary surplus of EGP 330 billion in H1 2024/25, marking significant financial progress with a 38.4% increase in tax revenues. Prime Minister Madbouly emphasized commitments to financial discipline and increased spending in crucial sectors. The government prioritizes economic growth and social protection alongside adherence to IMF reform programs.
Egypt reported a primary surplus of EGP 330 billion for the first half of the fiscal year 2024/25, which is the highest surplus achieved to date, according to Finance Minister Ahmed Kouchouk. This surplus is attributed to a significant 38.4% rise in tax revenues year-on-year, marking the strongest growth in several years.
Prime Minister Mostafa Madbouly met with Kouchouk at the government headquarters to review financial performance indicators from July 2024 to February 2025. The Prime Minister reiterated the government’s commitment to financial discipline while increasing expenditure in critical sectors like healthcare and education, as well as enhancing social protection program allocations.
Kouchouk highlighted improvements in debt management through better distribution of interest payments and controlled treasury-funded investments. Specifically, healthcare spending rose by 29% and education spending by 24% compared to the last fiscal year. Additionally, there was a notable 44% increase in subsidies, grants, and social benefits.
The meeting also outlined government priorities for the 2025-2026 fiscal year, which aim to stimulate economic growth, create jobs, and boost sectors such as tourism and technology. The government is focused on maintaining financial stability through adhering to fiscal targets, alleviating debt burdens, and increasing investments in social protection initiatives.
Kouchouk updated the audience on Egypt’s performance in the International Monetary Fund (IMF) reform program, noting the approval of the fourth tranche and preparation for the fifth review. He also suggested strategies to reduce debt in the budget sector for the upcoming fiscal year.
In conclusion, Egypt’s financial landscape for the first half of fiscal year 2024/25 shows remarkable improvement, highlighted by a record primary surplus and substantial growth in tax revenues. The government focuses on enhancing key sectors and maintaining financial discipline while aligning with IMF reform measures, aiming for sustained economic growth and social welfare improvements.
Original Source: www.dailynewsegypt.com
