Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues

Daily News Egypt

a day ago

Egypt recorded its highest-ever primary budget surplus in fiscal year 2024/2025, reaching EGP 629bn ($13.2bn), equivalent to 3.6% of GDP, the presidency announced on Saturday. The figure represents an 80% increase compared with the previous year, despite a steep decline in Suez Canal revenues.
Finance Minister Ahmed Kouchouk briefed President Abdel Fattah Al-Sisi during a meeting with Prime Minister Mostafa Madbouly, noting that the strong performance came in the face of a 60% shortfall in Suez Canal receipts, which resulted in losses of about EGP 145bn compared to budget projections.
Kouchouk said tax revenues rose 35% to EGP 2.2trn, marking the fastest pace of growth in recent years. The increase was driven by broadening the tax base, expanding electronic systems, and implementing settlement schemes for longstanding disputes. Between February and August 2025, more than 400,000 applications were submitted to resolve tax cases and 650,000 new or amended tax returns were filed, generating EGP 77.9bn.
The minister highlighted that government spending priorities included healthcare and education. Allocations covered the treatment of over 80,000 critical medical cases at state expense, payment of EGP 2.3bn in health insurance contributions for low-income citizens, the recruitment of 160,000 new teachers at a cost of EGP 4bn, and EGP 6.25bn for nationwide school meal programmes.
President Al-Sisi stressed the importance of maintaining fiscal discipline, sustaining primary surpluses, and reducing debt servicing costs. He also underlined the need to strengthen spending on health, education and social protection programmes to ease burdens on citizens and promote greater social equity.