Egypt’s Ministry of Finance said the state budget’s primary surplus increased to LE 897 billion, representing 4.2 percent of GDP, during the July-April period of FY2025/26, compared to LE 536 billion, or 3 percent of GDP, in the same period last year.
The ministry added that the overall budget deficit stood at LE 1.124 trillion, equal to 5.3 percent of GDP, compared to LE 1.122 trillion, or 6.2 percent of GDP, a year earlier.
The improvement was mainly supported by a 29.3 percent rise in tax revenues, which reached LE 2.208 trillion, up from LE 1.708 trillion during the same period last year. The increase was driven by stronger collections across most tax categories, improved engagement with the business community, and the continued impact of tax reform measures.
The ministry also noted that tax facilitation measures for SMEs, VAT law amendments, and the automation of tax systems helped strengthen tax administration, broaden the tax base, and boost collections.
Public spending remained contained during the period, supported by improved debt management, diversified financing sources, reduced reliance on the Treasury Single Account, and adherence to legal limits. The government also reaffirmed its commitment to keeping investment spending capped at LE 1.2 trillion for the current fiscal year.
Total public revenues rose by 34.7 percent, or LE 686.7 billion, to reach LE 2.663 trillion during the 10-month period, compared to LE 1.976 trillion a year earlier. Tax revenues made up 82.9 percent of total revenues, while non-tax revenues accounted for 17.1 percent.
Total public expenditures increased by LE 652.8 billion, or 21.2 percent, to reach LE 3.733 trillion, compared to LE 3.080 trillion in the same period of the previous fiscal year.
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