The Cabinet approved the draft budget for the fiscal year 2025/2026, which is set to be forwarded to the House of Representatives (the Parliament) for discussion and endorsement.

The budget outlines a total revenue of approximately EGP 3.1 trillion, with expenditures reaching EGP 4.6 trillion, reflecting a rise of 19% and 1 8%, respectively.

During the meeting, Minister of Finance Ahmed Kouchouk highlighted the target of achieving a primary surplus of EGP 795 billion, representing 4% of GDP, and reducing the public budget debt to 82.9%.

Referring to President Sisi’s directives of increasing spending on health, education, and social protection sectors and supporting productive and export sectors, the Minister affirmed that the constitutionally mandated spending on education, health, and scientific research has been met. In addition, some EGP 679.1 billion has been allocated to state employee wages, with an annual growth rate of 18.1%, to accommodate the new increases scheduled for July 1.

In respect to the Petroleum sector, Minister Kouchouk stated that some EGP 75 billion is allocated as a subsidy for petroleum products, an additional EGP 75 billion to support electricity, and EGP 3.5 billion to finance the extension of natural gas to homes.

He also stated that EGP 3 billion is allocated to help convert cars to run on natural gas.

During a press conference following the Cabinet meeting, Prime Minister Mostafa Madbouly noted that the government intends to conduct a gradual rise in fuel prices till the end of the year with the intention of preserving subsidies for diesel fuel.

Madbouly affirmed the strength of the Egyptian economy as appeared in the second quarter of the year 2024-2025 with a growth rate reaching 4.3%. He noted that all the indications of the national economy are so good considering the foreign challenges facing the country. He expressed his convention that the Egyptian economy would witness a huge leap with the restoration of the stability of the region.

Madbouly referred to the major growth recorded in all sectors except for the Suez Canal and the Petroleum and Gas sector which witnessed a setback in the past period because of the regional challenges.

He noted that the government works to intensify exploration activities and develop existing oil and gas fields to bolster the petroleum sector and contribute to the state plan of reaching an economic growth of 6%.