RIYADH: Egypt’s government revenues rose 34.7 percent year on year to 2.66 trillion Egyptian pounds ($50.6 billion) in the July-April period of fiscal year 2025/26, driven by a sharp increase in tax collections and ongoing fiscal reforms.
According to the Finance Ministry’s latest monthly bulletin, tax revenues, which accounted for 82.9 percent of total income, climbed 29.3 percent to 2.21 trillion pounds during the period, reflecting stronger business activity, wider tax compliance, and the impact of tax facilitation measures aimed at small and medium-sized enterprises.
“The notable increase in tax revenues was driven by “improved confidence with business community,” as well as the impact of a “bunch of tax incentives,” the report said.
The ministry added that “the digitalization of the tax system has enhanced tax collections, and widened the tax base.”
The stronger revenue performance helped narrow Egypt’s overall budget deficit to 5.3 percent of gross domestic product from 6.2 percent a year earlier, while the primary surplus widened to 897 billion pounds, equivalent to 4.2 percent of GDP.
The figures underscore Cairo’s efforts to stabilize public finances after a prolonged period of economic strain marked by inflation, currency pressures, and rising borrowing costs. Authorities have accelerated structural reforms, tightened fiscal controls, and expanded digital tax systems as part of a broader economic adjustment program backed by international lenders.
Income tax receipts rose 42.1 percent to 818.5 billion pounds, while value-added tax collections increased 22.7 percent to 907 billion pounds, supported by stronger receipts from goods and services.
Property tax revenues climbed 20.9 percent to 344.1 billion pounds, largely due to higher collections from interest on treasury bills and bonds, while taxes on international trade rose 15.6 percent to 113.7 billion pounds.
Non-tax revenues increased to 454.4 billion pounds, accounting for 17.1 percent of total revenues. The ministry said the gains were supported by higher proceeds from goods and services, dividends, and miscellaneous revenues, including exceptional one-off receipts linked to the Alam El Roum Project.
The report said Egypt’s “fiscal consolidation efforts” helped contain public spending through “diversifying sources of finances,” while also maintaining a ceiling on public investments worth 1.2 trillion pounds during FY2025/26.
The ministry’s bulletin also showed Egypt’s economy expanded 5.3 percent in the second quarter of FY2025/26, marking its strongest quarterly growth in several quarters.
In April, Ahmed Rostom, minister of planning and economic development, said the economy is projected to grow 5.4 percent by the end of FY2026/27, with growth expected to accelerate to 6.8 percent by FY2029/30 under the government’s medium-term economic plan.
