Arab Finance: Egypt has allocated EGP 832.3 billion for social support and protection in its fiscal year (FY) 2026/2027 budget, marking a 12% annual increase, as part of efforts to support vulnerable groups, the Ministry of Finance stated.
Minister Ahmed Kouchouk said the new budget is designed to provide security and protection for the most vulnerable segments of society, with expanded allocations across key subsidy and welfare programs.
The minister said EGP 175.3 billion has been earmarked for food subsidies, reflecting a 10% annual increase and benefiting more than 60 million citizens. An additional EGP 55.3 billion has been allocated to social programs including Takaful and Karama, social security, child pension, and rural women leaders, supporting more than 4.7 million families.
On the energy front, Kouchouk said EGP 104.2 billion has been allocated for electricity subsidies, representing a 39% annual increase aimed at supporting the sector, addressing operational challenges, and ensuring consistent service delivery. Additional funding has also been directed toward improving electricity transmission and distribution infrastructure.
The minister noted that EGP 13 billion has been allocated to provide housing support for low- and middle-income groups through utility subsidies, interest rate adjustments, and direct cash assistance. He added that EGP 4.6 billion has been directed to the Urban Development Fund to upgrade informal areas and provide adequate housing.
The minister also confirmed that Egypt will raise the minimum income for state employees to EGP 8,000 starting July, as part of a salary increase package exceeding EGP 100 billion included in the new fiscal year budget.
Kouchouk said the increases bring total wage allocations in the budget to EGP 821 billion.
He added the wage bill is set to rise by around 21% in the upcoming FY to ensure a real increase in public sector incomes that exceeds inflation, adding that the government aims to link salary adjustments to improvements in the quality of basic services provided to citizens.
The minister noted that the package includes a 12% periodic allowance for employees subject to the civil service law and 15% for those not covered by it, alongside an increase in the additional monthly incentive for all employees by EGP 750, at a total cost of EGP 77.5 billion.
He added that teachers will receive an additional monthly incentive of EGP 1,000 starting the new academic year, along with an excellence incentive of EGP 2,000 for outstanding school administrations, at a combined cost of EGP 14 billion. The measures are expected to benefit around one million teachers in public education and Al-Azhar institutions.
In the healthcare sector, employees will receive an additional EGP 750 per month, while night and overnight shift allowances will increase by 25% starting July 1st, at a total cost of EGP 8.5 billion, benefiting around 640,000 workers.
Kouchouk said the measures are part of broader efforts to improve living standards for public sector employees while enhancing the efficiency of government services.
