Minister of Finance Ahmed Kouchouk affirmed that the government is working to ease burdens on citizens and investors through a comprehensive vision for growth and development. He noted that strong financial results were achieved in the last fiscal year thanks to enhanced cooperation with the private sector.
Speaking at a press conference to review the fiscal performance results for 2024/25, Kouchouk said that economic, financial, and investment indicators are showing steady improvement, enabling the state to direct more resources to essential services that matter most to citizens. He stressed that public spending had not been curtailed; rather, allocations were increased for health, education, social protection programmes, and other vital sectors.
The Minister explained that the Ministry of Finance plays a pivotal role in driving economic, industrial, and export activity, while stimulating private sector growth through targeted and effective initiatives. He highlighted that tax burdens had been eased for business partners, allowing revenues to double without introducing new taxes, thanks to trust and cooperation with the private sector.
Kouchouk revealed that EGP 9.3bn was allocated to the mortgage finance initiative, benefiting 70,000 low- and middle-income citizens with adequate housing. He added that EGP 6.57bn was directed to local wheat purchases, EGP 60.2bn for imported wheat, and EGP 7.2bn for cotton support, while EGP 11.2bn was used to settle sugarcane dues.
On social priorities, Kouchouk said that health and education allocations were significantly raised. Health spending increased by 19.3%, with EGP 15bn spent on state-funded medical treatment for 2.5 million citizens, easing costs for thousands of low-income families. In addition, EGP 2.1bn was directed to presidential initiatives to eliminate waiting lists, benefiting nearly half a million people, while 80,000 critical cases from the neediest families received treatment in cooperation with the Ministry of Health. A further EGP 7.4bn was spent on health insurance programmes and medicines.
Education also saw substantial investment. EGP 4bn was spent to hire 160,000 new teachers on a part-time basis, benefiting 26 million students. A further EGP 6.9bn was allocated for printing schoolbooks, EGP 0.5bn for incentives to support pre-university education development, and EGP 7.2bn for school meals, an increase of 27%, benefiting 15.6 million students. He added that a new major initiative is being prepared in cooperation with the Ministry of Education.
Kouchouk confirmed that subsidies, grants, and social benefits reached EGP 642bn in the last fiscal year, a 12% increase year-on-year, with a focus on better targeting social protection programmes. Food subsidies accounted for EGP 165.4bn, up 24%, while EGP 43.2bn was allocated to social security and Takaful and Karama programmes, up 22.8%, to ease the burdens of low-income households. Pension funds received EGP 142.7bn, an increase of 5.8%. Public transport support rose to EGP 2.5bn, up 10.4%, alongside EGP 1.3bn for vehicle replacement and advancing the green transition.
The Minister also highlighted that nearly EGP 45bn was spent to support economic, industrial, and export activities, strengthening investment and boosting strategic sectors. He said that EGP 14.3bn was allocated to industrial and agricultural activities to support local production and job creation, while EGP 18bn was directed to export support and settling arrears owed to exporters.
A key priority, Kouchouk emphasised, was energy. He announced that EGP 440bn was allocated to address energy challenges, secure petroleum supplies, and settle dues to foreign partners. These allocations, he said, ensured stable electricity generation, prevented power cuts, and guaranteed energy availability for productive and investment activities.
He also stressed the ministry’s flexible management of public finances in coordination with state institutions to confront challenges and meet citizens’ needs. This included EGP 73.4bn allocated to the Egyptian Authority for Unified Procurement—up 92.4%—to pay dues to companies and maintain quality services in hospitals and health centres.
Transport sectors were also prioritised. Guarantees worth EGP 94bn were provided to support and develop key projects, including EGP 74.1bn for the National Authority for Tunnels and EGP 13.5bn for the National Railways Authority, aimed at improving services for citizens and boosting the movement of goods, trade, and tourism.
Kouchouk stressed that the government’s ability to increase revenues without imposing new taxes was only possible due to confidence and cooperation with the business community. He revealed that tax revenues rose by 35% in the last fiscal year, and recent tax facilitation measures launched in the past six months had encouraged compliance. Around 402,000 taxpayers requested settlement of disputes, 107,000 joined the simplified system voluntarily, and nearly 650,000 new and amended returns were filed, generating EGP 78bn in additional revenues.
Looking ahead, Kouchouk announced that a new package of tax facilities would soon be launched to further support economic activity. He emphasised that trust and certainty between the state and businesses were key to voluntary compliance, adding that the ministry remains committed to providing streamlined, fair, and transparent services. This includes accelerating VAT refunds, simplifying procedures, and resolving disputes amicably, supported by advanced risk management systems.
“The Ministry of Finance will continue to support growth, protect citizens, and encourage investment while ensuring financial stability,” he concluded.
