Next year’s fiscal budget is ramping up its education spending: We got an insight into the government’s financial priorities and plans for the next fiscal year with Finance Minister Ahmed Kouchouk’s budget statement to the House and the release of the draft Economic and Social Development Plan from the Planning and International Cooperation Ministry.

By the numbers: The government has allocated — including the sector’s share of debt servicing — EGP 684.8 bn for pre-university education and EGP 358.3 bn for higher education. Together, the two total EGP 1.0 tn, representing roughly 6.1% of GDP. These allocations mark a significant increase from the total spending on education for the current year, which totaled only EGP 858 bn across the sector in comparison — representing a 21.6% y-o-y increase.

When taking debt servicing out of the picture, education spending for the upcoming fiscal year will represent about 4.9% of the total governmental expenses, estimated at around EGP 8 tn, with EGP 393.8 bn allocated to education – marking a 33.7% increase compared to the current fiscal year.

Investments in infrastructure are a big part of the plan: The government earmarked EGP 63.4 bn for public investments in education services in the coming fiscal year, according to the development strategy, targeting major upgrades and expansions across the sector.

Bridging the teacher gap: The government is planning to hire some 150k teachers, implement literacy programs — especially in areas with high illiteracy rates — and expand early childhood education facilities, El Mashat emphasized in her presentation of the development plan. This comes as the country’s education sector faces serious teacher shortages, with an estimated gap of 470k teachers. The issue has escalated as the government added 98k new classrooms nationwide to accommodate the growing student population.

More classrooms, better schools: The government’s plan for the new fiscal year aims to build 17.3k new classrooms, renovate around 1.9k existing schools, and refurbish and replace 12.5k classrooms. It also plans to expand educational facilities and enhance school quality standards. These changes aim to reduce overcrowding, particularly in underserved areas, with investments directed toward basic education schools, especially in Cairo, Alexandria, Giza, Beheira, and Fayoum.

Technical education is also getting a boost: The government aims to establish 536 new technical classrooms, renovate 902 existing ones, upgrade 126 technical schools, and establish 10 new applied technology schools. Egypt is encouraging partnerships with the private sector to build these schools to meet labor market demands and accelerate digital transformation in education.

Higher education is also on the list: The government wants to make Egypt’s universities more competitive by encouraging private sector investment in higher education, expanding enrollment capacities at public and national universities, and improving education quality. Projects include completing university buildings and dormitories at 29 public universities and expanding facilities at 12 technological universities.

Private sector participation is crucial: The government is banking on its golden licenses initiative, which offers faster approvals, tax breaks, and easier land access, to bring more private players into the education space. The goal is to establish 1k new private schools by 2030. However, some warn that achieving these targets will require significant regulatory reforms and adjustments to policies to account for inflation and other economic pressures.

Tags: