Egypt reported a primary surplus of EGP 330 billion in H1 2024/25, driven by a 38.4% increase in tax revenues. Prime Minister Madbouly and Minister of Finance Kouchouk discussed priorities for fiscal stability, improved healthcare and education funding, and social protection, outlining goals for the upcoming year. Progress under the IMF program was also highlighted.
In the first half of the fiscal year 2024/25, Egypt has achieved a notable primary surplus of EGP 330 billion, marking the highest surplus recorded to date. This financial success, according to Minister of Finance Ahmed Kouchouk, is driven by a remarkable 38.4% year-on-year increase in tax revenues, representing the most substantial growth rate in recent years.
During a meeting on Tuesday, Prime Minister Mostafa Madbouly and Minister Kouchouk convened to review key financial performance indicators from July 2024 to February 2025 at the government headquarters in the New Administrative Capital. Prime Minister Madbouly reaffirmed the government’s commitment to financial discipline while also highlighting increased spending in crucial sectors such as healthcare and education, along with enhanced allocations for social protection programs.
Kouchouk elaborated on government initiatives aimed at optimizing debt management, emphasizing improved distribution of interest payment obligations and the management of treasury-funded investments. Notably, healthcare spending has risen by 29%, and education expenditure has increased by 24% compared to the previous fiscal year, with subsidies, grants, and social benefits also experiencing a significant 44% increase.
The discussion further addressed the government’s strategic objectives for the 2025-2026 fiscal year, which include fostering economic growth, generating job opportunities, and supporting vital sectors such as tourism and technology. The government is dedicated to sustaining financial stability by meeting fiscal targets, alleviating debt burdens, and enhancing investments in social protection initiatives.
Kouchouk also provided insights into Egypt’s advancements within the International Monetary Fund (IMF) reform program, mentioning the approval of the fourth tranche and the preparations for the forthcoming fifth review. He suggested measures aimed at diminishing the budget sector’s debt in the upcoming fiscal year.
Egypt’s financial performance in the first half of the 2024/25 fiscal year is commendable, reflecting a primary surplus of EGP 330 billion alongside significant increases in tax revenues. The government’s commitment to maintaining financial discipline while enhancing investment in essential sectors is evident. Ongoing initiatives under the IMF program and future strategies promise to further support economic growth and social welfare.
Original Source: www.dailynewsegypt.com
