Egypt’s government revenues rose 34.7 per cent year on year to 2.66 trillion Egyptian pounds ($50.6 billion) in the July-April period of fiscal year 2025/26, driven by a sharp increase in tax collections and ongoing fiscal reforms.
According to the Finance Ministry’s latest monthly bulletin, tax revenues, which accounted for 82.9pc of total income, climbed 29.3pc to 2.21trn pounds during the period, reflecting stronger business activity, wider tax compliance, and the impact of tax facilitation measures aimed at small and medium-sized enterprises.
“The notable increase in tax revenues was driven by “improved confidence with business community,” as well as the impact of a “bunch of tax incentives,” the report said.
The ministry added that “the digitalisation of the tax system has enhanced tax collections, and widened the tax base.”
The stronger revenue performance helped narrow Egypt’s overall budget deficit to 5.3pc of gross domestic product from 6.2pc a year earlier, while the primary surplus widened to 897bn pounds, equivalent to 4.2pc of GDP.
The figures underscore Cairo’s efforts to stabilise public finances after a prolonged period of economic strain marked by inflation, currency pressures, and rising borrowing costs. Authorities have accelerated structural reforms, tightened fiscal controls, and expanded digital tax systems as part of a broader economic adjustment programme backed by international lenders.
Income tax receipts rose 42.1pc to 818.5bn pounds, while value-added tax collections increased 22.7pc to 907bn pounds, supported by stronger receipts from goods and services.
Property tax revenues climbed 20.9pc to 344.1bn pounds, largely due to higher collections from interest on treasury bills and bonds, while taxes on international trade rose 15.6pc to 113.7bn pounds.
Non-tax revenues increased to 454.4bn pounds, accounting for 17.1pc of total revenues. The ministry said the gains were supported by higher proceeds from goods and services, dividends, and miscellaneous revenues, including exceptional one-off receipts linked to the Alam El Roum Project.
The report said Egypt’s “fiscal consolidation efforts” helped contain public spending through “diversifying sources of finances,” while also maintaining a ceiling on public investments worth 1.2trn pounds during FY2025/26.
The ministry’s bulletin also showed Egypt’s economy expanded 5.3pc in the second quarter of FY2025/26, marking its strongest quarterly growth in several quarters.
In April, Ahmed Rostom, minister of planning and economic development, said the economy is projected to grow 5.4pc by the end of FY2026/27, with growth expected to accelerate to 6.8pc by FY2029/30 under the government’s medium-term economic plan.
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