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 an IMF program.
Egypt’s 2025/26 Budget
Egypt plans to increase spending by 18% to help vulnerable people as it recovers from a serious economic crisis. The increase is also due to high inflation, which was 12.8% in February.
The budget expects government income to rise by 19% to $61.3 billion (EGP 3.1 trillion). The government aims for a budget surplus of $15.7 billion (EGP 795 billion), which is 4% of the country’s total economic output (GDP). It also plans to lower debt to 82.9% of GDP.
A large part of the budget will go to healthcare, education, and social support, following the president’s orders.
Prime Minister Mostafa Madbouly said that if outside factors do not affect the economy, Egypt could experience strong growth, with rates reaching over 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 increase 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). Another EGP 75 billion each will go to fuel and electricity subsidies.
The cabinet approved the budget on Wednesday. It will now be sent to parliament for final approval.
Financial Support from UAE and IMF
The budget comes after a $57 billion rescue package from the UAE and the International Monetary Fund (IMF). Egypt also devalued its currency to ease a shortage of foreign money. Although inflation has slowed to its lowest point in three years, many Egyptians still struggle with high living costs.
IMF Assistance
The IMF has agreed to give Egypt $1.2 billion after reviewing its financial progress. This money will help stabilize the economy, reduce debt, and encourage long-term growth.
Additionally, the IMF has approved Egypt’s request for another $1.3 billion under a program designed to help countries handle financial challenges.
The IMF also praised Egypt for taking steps to improve its economy, such as unifying its exchange rate. This has cleared up delays in currency exchange and reduced import problems.
Published: 28th March 2025
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