Egypt’s primary surplus hits new record as budget deficit declines: Finance Ministry

Cairo – March 26, 2025: In the first half of the current fiscal year (FY2024/2025), Egypt's fiscal performance demonstrated positive progress, with the overall budget deficit experiencing a slight decline and the primary surplus reaching its highest level in two decades.

The Ministry of Finance's monthly report indicated that the deficit decreased to 4.15 percent from July to December 2024, compared to 4.60 percent during the same period last year. This improvement is primarily due to a notable surge in tax revenues, coupled with a decrease in public spending.

The primary surplus for the first half of the fiscal year was estimated at approximately EGP 230 billion, marking an increase of EGP 81 billion from the same period last year.

The report revealed that tax revenues grew by 38 percent in the first six months of the fiscal year.

This growth was driven by a broad increase in all tax categories, fueled by the recovery of economic activity, the resolution of the foreign exchange crisis, and the expansion of the tax base through system automation.

As part of its international commitments, the Egyptian government had pledged to limit investment spending in the previous year, creating room for private sector participation in the economy.

In a separate report published on the same day, the Ministry of Planning, Economic Development, and International Cooperation revealed that GDP growth accelerated to 4.3 percent in Q2 FY2024/2025, a significant rise from 2.3 percent in the same period of the previous fiscal year.

Among the sectors that contributed to the growth were non-oil manufacturing, tourism, information and communications technology (ICT), and trade-related transportation and storage. The report underscores how Egypt’s economic recovery is gaining momentum, with the country’s policies continuing to support the growth of critical sectors.