Egypt’s debt interest payments jump 40.9% YoY in 7 months
Updated 3/2/2026 9:38:00 AM
Arab Finance: Interest payments on public debt jumped by 40.9% year-on-year (YoY) to EGP 1.49 trillion in the first seven months of fiscal year (FY) 2025/2026, according to the Ministry of Finance’s latest financial performance report.
The leap was attributed to high interest rates and an increase in total public debt, which led to escalating debt service costs.
Meanwhile, tax revenues hiked by 31.4% YoY to EGP 1.4 trillion at the end of January.
Total public revenues soared by 41% YoY to EGP 1.8 trillion, backed by a remarkable growth in non-tax revenues, which jumped by 95.9% to EGP 369.2 billion.
Likewise, public expenditure increased by 29.5% YoY to EGP 2.6 trillion due to surging interest payments, in addition to higher spending on wages, employee compensation, subsidies, and public investments.
Some financial indicators improved, with the overall budget deficit stabilizing at 4.2% of gross domestic product (GDP).
The primary surplus more than doubled, widening by 119% YoY to EGP 601.9 billion, equivalent to 2.9% of GDP.
Based on previous remarks by government officials, public revenues are expected to exceed EGP 3.5 trillion in the next FY, with a target increase of 1-2% of GDP.
The government targets achieving tax revenues valued at EGP 2.8 trillion in the current budget as part of efforts to expand the tax base that allows for increased spending on priority sectors.
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