Prime Minister Mostafa Madbouly announced the new state budget targeting a reduction in the debt-to-GDP ratio to around 78% by June 2027, as the economy posted 5% growth in the third quarter.
Madbouly spoke at a weekly press conference in the New Administrative Capital after a cabinet meeting. The budget focuses on lowering financing needs to 10% of GDP and reducing the debt service bill to 35% of expenditures.
It allocates EGP 837bn for social safety net programmes and EGP 822bn for public sector salaries. Health funding rose 30% and education funding rose 20%.
The economy expanded 5% in the third quarter despite fallout from the US-Iran conflict. The petroleum sector returned to positive growth after settling arrears to foreign partners.