Presidential Spokesman Ambassador Mohamed El-Shenawy said
the President was briefed on the preliminary indicators of the 2024/2025
financial year, which showed strong and balanced results. The government
achieved a record primary surplus of EGP 629 billion (3.6% of GDP), marking an
80% increase compared to the EGP 350 billion recorded in 2023/2024.
Finance Minister Kouchouk explained that this strong
performance was achieved despite external shocks, most notably a 60% drop in
Suez Canal revenues compared to projections, resulting in a shortfall of around
EGP 145 billion in the state budget. He added that the fiscal performance was
accompanied by broad improvements across economic indicators, with sharp
increases in private investment, manufacturing, and exports.
The Finance Minister also highlighted that tax revenues
recorded their highest growth in years, rising by 35% thanks to a package of
tax facilities, an expanded tax base, and strengthened trust with the business
community. Overall budget revenues grew by 29%, while primary expenditures rose
by 16.3%. Tax revenues reached EGP 2.204 trillion in 2024/2025, up 35.3%
compared to the previous year.
Kouchouk attributed the improvement in tax performance to
measures including widening the tax base by attracting new voluntary taxpayers,
settling disputes amicably, deploying advanced digital systems, establishing a
dedicated e-commerce unit, and introducing a new VAT refund system. These
steps, alongside streamlined procedures and greater transparency, enhanced
compliance and reduced tax evasion.
The first phase of the new tax facilitation package,
implemented between February and August 2025, resulted in 401,929 requests to
settle longstanding disputes, along with over 650,000 voluntary new or amended
tax returns. These measures generated EGP 77.9 billion in revenues.
Additionally, 104,129 small businesses with annual revenues below EGP 20
million benefited from incentives under Law No. 6 of 2025.
The Finance Minister noted that the state allocated funding
for the treatment of more than 80,000 critical medical cases and covered EGP
2.3 billion in health insurance premiums for low-income citizens in several
governorates.
In the education sector, 160,000 teachers were hired to fill
staffing gaps for the 2024/2025 school year at a cost of EGP 4 billion. The
state also allocated EGP 6.25 billion for school nutrition programs to provide
students with balanced meals to combat malnutrition.
President El-Sisi stressed the need to continue
strengthening fiscal discipline across government operations to enhance
economic performance and support development efforts. He underlined the
importance of fostering strong partnerships between government institutions and
the business community, adopting a balanced fiscal policy to drive growth and
maintain stability, and prioritizing debt service reduction.
The President directed the government to maintain a primary
surplus and increase spending on the Takaful and Karama cash support program,
as well as the health and education sectors and social protection initiatives,
to ease the burden on citizens and promote social justice.