Egypt Achieves EGP 330 Billion Primary Surplus in First Half of 2024/25 Fiscal Year

Egypt has achieved an EGP 330 billion primary surplus in H1 2024/25, the highest to date. This reflects strong financial performance driven by a 38.4% increase in tax revenues. The government emphasizes financial discipline while enhancing funding for healthcare and education, and aims to support economic growth and reduce budget sector debt under the IMF reform program.

Egypt has reported a primary surplus of EGP 330 billion for the first half of the fiscal year 2024/25, achieving its highest surplus to date. This significant financial performance is attributed to a 38.4% increase in tax revenues compared to the previous year, marking the highest growth rate in several years, as stated by Minister of Finance Ahmed Kouchouk.

In a meeting held at the government headquarters in the New Administrative Capital, Prime Minister Mostafa Madbouly and Minister Kouchouk reviewed key financial indicators from July 2024 to February 2025. The Prime Minister reiterated the government’s commitment to maintaining financial discipline while simultaneously boosting spending in essential sectors such as healthcare and education, along with enhanced allocations for social protection programs.

Minister Kouchouk elaborated on the government’s strategy for enhanced debt management, which includes the effective distribution of interest payment obligations and the control of treasury-funded investments. Notably, healthcare spending has risen by 29% and education funding by 24% when compared to the previous fiscal year, with subsidies, grants, and social benefits experiencing a 44% increase.

The dialogue also encompassed the government’s strategic priorities for the upcoming 2025-2026 fiscal year, focusing on stimulating economic growth, creating employment opportunities, and supporting sectors such as tourism and technology. The administration aims to maintain financial stability through adherence to fiscal targets, reduction of debt burdens, and increased investments in social protection programs.

Moreover, Kouchouk provided an update on Egypt’s progress under the International Monetary Fund (IMF) reform program, confirming the approval of the fourth tranche and preparations for the fifth review. He also proposed measures aimed at curtailing the budget sector’s debt in the forthcoming fiscal year.

In summary, Egypt has reached a commendable primary surplus of EGP 330 billion for H1 2024/25, driven by substantial growth in tax revenues. The government’s structured approach towards fiscal discipline is evident through increased investments in critical sectors such as healthcare and education. Maintaining financial stability remains a priority, supported by the ongoing IMF reform program. Further measures are anticipated to alleviate the budget sector’s debt, reflecting a commitment to robust economic governance.

Original Source: www.dailynewsegypt.com