EGP 80bn allocated in FY2026/27 budget to boost production, exports: Finance Minister

Finance Minister Ahmed Kouchouk said EGP 80bn has been allocated in the fiscal year (FY) 2026/2027 budget to programmes aimed at supporting and stimulating production, manufacturing, entrepreneurship, and exports of goods and services. The allocation includes EGP 48bn for export rebate schemes, EGP 6.7bn to support the tourism sector, and EGP 6bn in financing facilities for productive sectors. Presenting the draft budget’s financial statement to parliament, Kouchouk said targeted public revenues are projected at EGP 4trn, marking a 30% increase, while expenditures are expected to reach EGP 5.1trn, up 13.2%. He stressed that the budget is designed to meet citizens’ basic needs, improve public services, and support economic activity. He added that the government is addressing current and potential risks by increasing both the size and share of general reserves, while reallocating spending in line with national priorities. Fiscal policy, he noted, is focused on supporting citizens, maintaining financial stability, stimulating economic growth, and strengthening confidence among investors and the business community. Kouchouk said EGP 90.5bn has been allocated to the Unified Procurement Authority, a 34.6% annual increase, to ensure the provision of medicines and medical supplies. A further EGP 7.8bn has been earmarked for printing pre-university textbooks, alongside EGP 7bn for school nutrition programmes. The budget allocates EGP 821bn for public sector wages and EGP 832.3bn for subsidies and social protection. This includes EGP 178.3bn for food subsidies and EGP 55.3bn for programmes such as Takaful and Karama, social security, child allowances, and support for rural women. He added that EGP 120bn has been earmarked for energy support and addressing structural imbalances to ensure reliable service delivery, while EGP 13bn is allocated for housing for low- and middle-income groups, and EGP 4.3bn for the development of informal areas. An additional EGP 69.1bn has been allocated to finance the purchase of locally produced wheat from farmers, following an increase in the procurement price to EGP 2,500 per ardeb this season. On fiscal targets, Kouchouk said the government aims to achieve a primary surplus of 5%, reduce the overall deficit to 4.9% of GDP, and bring the debt-to-GDP ratio down to 78% by June 2027. External debt is projected to decline by $1bn-2bn annually. He added that the state is also working to reduce the financing needs of the budget sector to around 10% of GDP over the medium term, while lowering debt service costs to about 35% of total expenditure.  The post EGP 80bn allocated in FY2026/27 budget to boost production, exports: Finance Minister first appeared on Dailynewsegypt.