Reviewing Egypt’s Government Budget Key Indicators for FY2024/25

Updated 3/23/2024 9:00:00 AM

The Ministry of Finance (MoF) has started unveiling plans under the state’s general budget for fiscal year (FY) 2024/25.

Implementing these new plans will restructure the state’s public finance framework in line with the government’s efforts to reform the economic trajectory.

The general budget includes the state's overall budget, along with the budgets of 40 economic entities, encompassing both revenues and expenditures.

The MoF further highlighted its targets for key budget indicators in the upcoming FY. Hence, this Factsheet outlines these indicators, while explaining improvements compared to FY 2023/24 planned budget.

The new general budget for FY 2024/25 targets increasing the public expenditures by 30.4% to EGP 3.9 trillion, compared to EGP 2.9 trillion in FY 2023/24 budget. The MoF’s latest data shows that expenditures reached EGP 1.75 trillion from July to January of FY 2023/24.
At the end of January 2024, the Cabinet decided to slash the public investment for FY2023/24 by 15%. In this context, the new budget will continue limiting public investment, with all government authorities’ investments capped at EGP 1 trillion. This decision aims at creating a room for private sector expansion.
The new budget earmarks EGP 596 billion for subsidies, marking a 12.5% year-on-year (YoY) increase. Despite the uptick in the value of subsidy allocations, the subsidy share from government spending declined from 7% in FY2023/24 to 15.3% in FY2024/25.
Commodity subsidies account for 47% of the total subsidy allocation estimated for FY2024/25. More than EGP 134 billion (22.5%) are directed to bread and food subsidies. Additionally, EGP 147 billion (25%) is designated for fuel subsidies. Furthermore, allocations for Takaful and Karama will exceed EGP 40 billion.
Public revenues are projected to jump by 21.4% YoY to EGP 2.6 trillion in FY2024/25. During the first seven months of FY 2023/24, revenues amounted to EGP 951.9 billion.
Taxes are the primary source of government revenue, accounting for 80% of total revenues. Tax revenues are targeted to increase by 30.7% YoY to EGP 2 trillion.
The government plans to achieve an ambitious primary surplus of 3.5%, compared to 2.5% targeted in FY2023/24.
The budget deficit is projected to hit EGP 1.3 trillion in FY 2024/25. In this regard, the government is committed to reducing the budget deficit to 6% of the gross domestic product (GDP) in the medium term.
Reducing the public debt is one of the government's key targets. To cut the debt to less than 80% within the next three years, the budget will limit the public entities’ annual debts, along with directing the primary surplus and 50% of revenues from initial public offering programs (IPOs) to repay debt principal and service.