• Egypt approves 5.1 trillion pound budget for 2026/2027
• Spending prioritizes health, education, social protection, economic growth
• Revenues projected up 27.6%, debt targeted to decline

Egypt's government approved a draft budget of 5,100 billion Egyptian pounds (approximately $96.9 billion) for fiscal year 2026/2027 this week, a 13.2% increase from the previous fiscal year.

The Finance Minister said the new budget is designed to benefit citizens and investors and that it boosts economic activity. He added that health, education, social protection, and support for domestic production and exports are the main spending priorities.

The draft includes the consolidation of the budgets of 65 public economic entities and the approval of the economic and social development plan for fiscal year 2026/2027. Revenues are projected to reach 4,000 billion Egyptian pounds, up 27.6%. Social protection spending stands at 832.3 billion Egyptian pounds, a 12% year-on-year increase. An additional 90 billion Egyptian pounds will be allocated to programs supporting economic activity, with incentives linked to measurable outcomes.

Egypt's macroeconomic indicators have shown signs of improvement in recent years, following a period marked by declining foreign currency revenues, high inflation, rising public debt, and a shortage of foreign exchange. The International Monetary Fund attributes this improvement to restrictive monetary and fiscal policies combined with greater exchange rate flexibility. The country has also benefited from strong tourism revenues, remittances from expatriate workers, and major investment agreements.

Growth reached 4.4% in 2024/2025, up from 2.4% in 2023/2024, while inflation fell sharply to 11.9% in January 2026, driven by restrictive monetary and fiscal policies. In the 2026/2027 draft budget, the government aims to reduce public debt to 78% of gross domestic product, according to the IMF, down from 86.8% in 2024/2025.

Lydie Mobio