Egypt aims for 5.4% economic growth, LE 1.2 trillion primary surplus in 2026/27 budget

CAIRO – 24 March 2026: Egypt said on Tuesday that it aims to strike a balance between promoting economic growth, enhancing Egypt’s competitiveness, and maintaining fiscal discipline amidst regional challenges.

A meeting between President Abdel Fattah El-Sisi and state officials highlighted the government’s objectives to achieve economic growth of 5.4% during the state budget of 2026/2027, the Presidency said in a statement.

The government also seeks to achieve a primary surplus of LE 1.2 trillion, while ensuring stable inflation, allocating LE 90 billion to programs supporting economic activity linked to measurable outcomes, and ensuring continued energy subsidies.

Bolstering Resilience

The president has called for continued comprehensive institutional reforms to ensure fiscal discipline and sound governance by rationalizing spending, boosting revenues, and cutting public debt.

These efforts aim at strengthening the economy’s resilience in the face of various challenges, the president said, as he reviewed upcoming fiscal policy priorities.

During the meeting, El-Sisi directed the government to continue efforts aimed at attracting more domestic and foreign investment.

He also ordered maintaining direct and positive engagement with global investment communities and clearly communicating Egypt’s economic measures to contain regional repercussions.

 

State’s Fiscal Policy

El-Sisi reviewed short- and medium-term fiscal policy priorities for the 2026/2027 budget during a meeting with Prime Minister Mostafa Madbouly and Finance Minister Ahmed Kouchouk.

The state’s fiscal policy includes establishing a new partnership with the business community to boost confidence, improve services, and enhance policy clarity, according to the Presidency.

The plans also include implementing targeted tax and customs facilitation measures and expanding the tax base by increasing compliance without imposing new burdens on citizens or businesses, the statement said.

Debt Service, Wage Increase

Kouchouk added that debt service indicators are expected to improve significantly, with continued efforts to reduce the debt-to-GDP ratio.

Fiscal priorities also include meaningful increases in health and education spending, higher wages for teachers, and real wage increases for public sector employees tied to performance and exceeding inflation rates.

The meeting reviewed proposals for wage increases, key policies aimed at reducing budget sector debt and debt servicing costs.

Discussions covered measures to achieve higher growth rates, support the private sector, rely on goods and services exports as a primary driver of growth, boost productivity, expand spending on research and development, and encourage private investment.

Fiscal Balance Amid Challenges

The meeting also reviewed targeted indicators for growth, primary surplus, expenditures, and revenues.

El-Sisi also checked on government efforts to achieve fiscal balance to enhance overall economic performance, particularly in light of mounting regional challenges and their economic repercussions.

The minister stressed that the government is continuing reforms to ensure fiscal and economic stability and to stimulate private sector growth.

Additionally, the government is committed to maintaining economic activity, production, manufacturing, and exports through balanced, investment-friendly fiscal policies, he added.

Kouchouk also highlighted the continuation of tax, customs, and real estate facilitation measures to ease burdens on citizens and investors.