First-half results for FY 2025/26 show strong financial performance –Ministry

The Egyptian pound dropped again against the dollar on the black market on 21 July 2016, extending its recent decline despite central bank efforts to close the gap between demand and supply in the dollar-starved economy. Egypt, which relies heavily on imports, is facing a shortage in foreign currency inflows after a 2011 uprising drove tourists and foreign investors away, causing the country's reserves to tumble to $16.56 billion from $36 billion. A black market for dollars has sucked up liquidity from the banking system while the central bank kept the pound artificially strong and rationed dollars through weekly auctions, putting a strain on foreign reserves. (Photo by Fayed El-Geziry /NurPhoto via Getty Images)

The Ministry of Finance said first-half results for the 2025/2026 fiscal year show strong financial performance despite regional and global challenges.

In its semiannual report, the ministry said tax revenues rose 32 percent in July-December of FY 2025/26 to LE 1.2 trillion, while total revenues increased 30.2 percent to LE1.4 trillion.

Expenditures grew 26.9 percent to LE2.2 trillion, driven by higher interest payments, subsidies, social benefits, and public investments, which jumped 52.6 percent to LE141.4 billion.

The government recorded a primary surplus of LE383 billion (1.8 percent of GDP), up from LE 230 billion (1.3 percent of GDP) a year earlier, while the overall deficit stood at 4.2 percent of GDP, the ministry said.

The ministry attributed the improved performance to ongoing economic and tax reforms, stronger tax collection, expanded digitalization, and efforts to support private-sector-led growth while maintaining fiscal discipline and social protection spending.