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The General Government Budget for the upcoming fiscal year is forecasting significant rises in both revenues, with total revenues jumping to some EGP 7.9 tn, up from the estimated EGP 7.2 tn penciled in for the current fiscal year. Revenues from economic authorities are set to total some EGP 4.8 tn, compared to EGP 4.3 in the previous fiscal year
Expenditures are also set to rise, with government spending in the budget coming in at EGP 9.1 tn, up from EGP 8.4 tn previously. Of the total amount, expenditures by economic authorities are set to contribute some EGP 4.5 tn.
REMEMBER- The government amended the Unified Budget Act last year to allow for the budgets of all 59 of the state’s economic bodies and the state budget to be presented in the General Government Budget — a consolidated budget to help improve the state’s financial indicators by accounting for the entirety of the state’s revenues. This year’s General Government Budget includes the budgets of 40 different entities, with the government planning to incorporate the budgets of other units into the budget over a five-year period.
Wages are set to rise to EGP 746 bn in the General Government Budget, while the purchase of goods and services will total some EGP 3.4 tn — EGP 3.2 tn of which will be for economic bodies, with the remaining EGP 217 bn for state budget agencies. Subsidies are also set to jump to EGP 801 bn.
Interest payment obligations are also on the rise, reaching EGP 2.6 tn — however, their contribution to total public expenditures will decrease to 28.5%, compared to the interest payments borne by state budget agencies alone, which make up around 50% of the public government budget’s spending. Meanwhile, the volume of borrowing and issuance of different debt instruments will reach EGP 3.9 tn, representing 19% of GDP.
But there’s positive signs on the budget deficit front, which is to come in at 6.9% of GDP, down from the 7.3% in the state budget. The General Government Budget will also be able to achieve a higher primary surplus of 5.8% in FY 2025-26, compared to only 4.0% targeted in the state budget.
ICYMI- Finance Minister Ahmed Kouchouk delivered his budget statement to the House on Tuesday, giving us the first proper look at the draft state and public government budgets for the next fiscal year. You can read our rundown of the budget here.
