Egypt's cabinet approved the 2025/26 budget with 4.6 trillion Egyptian pounds ($91.05 billion) of expenditures on Wednesday, a government statement read, as the country tries to recover from an economic crisis with an increase of around 18 percent in government spending.
It will include a 15.2 percent increase in spending on grants, subsidies, and social welfare, including a 20 percent hike on bread subsidies.
It comes after a range of benefits were offered to lower-income Egyptians during the Ramadan and Eid Al-Fitr season.
International financial bodies such as the IMF have warned Cairo about colossal government spending on subsidies, particularly with Egypt's ballooning population, but economists and activists generally agree that such expenses are essential to stave off hunger.
The cabinet said Egypt expects revenues of 3.1 trillion Egyptian pounds in 2025/26. ($1 = 50.5200 Egyptian pounds).
Egypt's GDP growth rate increased to 4.3 percent in the second quarter of its 2024/25 year compared with 2.3 percent in the same period a year earlier, the planning ministry said on Wednesday.
GDP grew along with total investments, though public investments were below 40% of the total. Several sectors supported growth, including non-oil manufacturing activity, which was up by 17.74 percent, and tourism activity, which surged 18%. The fiscal year began on July 1.
Some sectors contracted in the second quarter of fiscal 2024/25, including the Suez Canal, where activity fell by 70 percent.
Extraction activity growth fell 9.2 percent, on the back of oil extraction activity, which slipped 7.6 percent and gas by 19.6 percent.
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