Egypt approves a $91 billion budget to help vulnerable people as it recovers from an economic crisis
Egypt’s government approved a $91 billion (EGP 4.6 trillion) budget on Wednesday for the 2025/26 financial year, starting in July. The country is working to improve its finances with help from the IMF.
Egypt’s 2025/26 Budget
Egypt plans to increase spending by 18% in the 2025/26 budget. This is to help people in need as the country recovers from an economic crisis. High inflation, which was 12.8% in February, is also a reason for the spending increase.
The budget expects government revenues to grow by 19% to $61.3 billion (EGP 3.1 trillion). The government aims for a primary surplus of $15.7 billion (EGP 795 billion), equal to 4% of the country’s total economy (GDP), and plans to lower debt to 82.9% of GDP.
A large part of the budget will go to healthcare, education, and social support, following instructions from the president.
Prime Minister Mostafa Madbouly said that if external factors do not interfere, Egypt’s economy could grow quickly, with growth rates above 6%.
Workers’ Wages
The budget includes $13.8 billion (EGP 697.1 billion) for government workers’ salaries, an 18.1% increase. Social security pensions will rise by 35% to $1.1 billion (EGP 54 billion).
Egypt will also raise subsidies for bread and essential goods by about 20%, setting aside $3.2 billion (EGP 160 billion). An additional EGP 75 billion will go toward fuel and electricity subsidies.
After cabinet approval on Wednesday, the budget will be sent to parliament for final approval.
This budget follows a $57 billion financial aid package from the UAE and the International Monetary Fund (IMF), as well as a major currency devaluation to fix a shortage of foreign currency. Inflation has slowed to its lowest in three years, but many Egyptians still struggle with high living costs.
IMF Funding
The IMF approved a $1.2 billion payment to Egypt this month after reviewing the country’s financial reforms.
This money is meant to keep the economy stable, lower financial deficits, and support long-term growth.
The IMF also approved Egypt’s request for another $1.3 billion under the Resilience and Sustainability Facility (RSF).
During a recent visit, the IMF praised Egypt for making key changes, such as setting a single exchange rate. This change has helped clear the backlog of foreign currency demand and reduce imports.
Published: 27th March 2025
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