Egypt's Finance Minister Ahmed Kouchouk announced plans to reduce the budget debt-to-GDP ratio to 80% by the end of June 2026, after it fell from 96% to 84% over the past two years. The external debt of budget agencies has also decreased by approximately $4 billion during this period.
Finance Minister Ahmed Kouchouk spoke on Saturday at a salon hosted by the Institute of National Planning, noting that the government is continuing a path of fiscal discipline, paying more than it borrows to improve economic indicators. He detailed the impact of the government's first package of tax facilities, which encouraged voluntary compliance: taxpayers submitted 612,000 new and amended tax returns and voluntarily disclosed additional economic activity worth EGP 1 trillion, leading to EGP 78 billion in extra tax payments.
The tax authority received 400,000 requests to close old tax files, and 127,000 taxpayers have used the integrated simplified tax system so far. Tax revenues rose 36% last year without new burdens on the business community, while private investment increased 73%, with strong growth in industrial, information technology, and tourism sectors.
Kouchouk announced preparations for a second package of tax incentives for compliant taxpayers, plus upcoming packages for customs and real estate taxes to simplify procedures. The new budget will include higher allocations for health, education, and cash support programs for vulnerable groups. He stated, "The private sector is capable of transforming Egypt into a regional centre for production and exports."
Reducing debt service costs, he added, would free up resources to improve living standards and boost spending on social protection and economic support. He outlined an ambitious vision to develop local administrations' resources, ensuring growth benefits reach citizens across all governorates. Ashraf El-Araby, head of the Institute of National Planning, said the business and economic community welcomes the current incentives and facilitations, emphasizing the need to accelerate toward Egypt Vision 2030 targets and narrow economic gaps.
