Egypt's Finance Minister Ahmed Kouchouk said the government is working to reduce budget sector debt and the overall deficit while maintaining a primary surplus to lower debt servicing costs and create greater fiscal space for human development and social protection. He added that efforts are underway to diversify financing sources with a focus on development financing and the domestic market alongside a gradual reduction in reliance on commercial borrowing.
Finance Minister Ahmed Kouchouk spoke during an open discussion with a group of intellectuals and economic experts, saying: “I am pleased with the level of dialogue with thinkers, experts and citizens. We remain open to all perspectives and will seek to benefit from proposals and recommendations wherever possible. While views may differ on how best to address crises, we are committed to continuous evaluation and course correction when needed.”
The 2026/2027 fiscal year budget aims to be balanced and flexible, incorporating sufficient reserves to absorb potential risks. It is built on assumptions, determinants, and priorities with multiple alternative scenarios, including a 30% increase in health sector allocations and 20% for education, alongside rises in subsidies, social protection, and essential services.
A significant share of treasury-funded investments will accelerate the “Decent Life” initiative and expand the comprehensive health insurance system. The government confirmed continued initiatives to stimulate tourism, production, manufacturing, and exports, while boosting tax and non-tax revenues and expanding the private sector's role.
Kouchouk announced the second package of tax facilitation measures comprising 33 legislative and executive actions, such as eliminating double taxation on dividend distributions, introducing a stamp duty in place of capital gains tax to encourage investment in the Egyptian Exchange, and tax incentives for three years for listing large companies. A mobile application for real estate transactions will be launched, and individuals will be exempt from real estate transaction tax when selling to first-degree relatives.