The external debt of Egypt's budgetary authorities declined by nearly $4 billion over the past two years, including $1 billion last year, equivalent to a 10 percent reduction relative to GDP.
By the end of June, external debt stood at 85 percent of GDP, according to Minister of Finance Ahmed Kouchouk.
Speaking at a press conference on Saturday, August 31st, 2025, to present the results of fiscal year 2024/2025, the minister announced that a Medium-Term Debt Strategy will be released before December.
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The strategy aims to lower public debt levels and ease repayment obligations by strengthening the regulatory framework for risk management and conducting a full assessment of debt markets.
Kouchouk noted that the average maturity of public debt rose from 1.2 years in June 2024 to 1.6 years by the end of the past fiscal year. He also confirmed that Egypt will continue cutting external debt linked to budget financing by $1-2 billion annually.
According to Finance Ministry data, domestic debt servicing consumed 64.3 percent of total revenues, while domestic interest payments accounted for 43.4 percent of total expenditures.
Interest payments alone absorbed 73 percent of public revenues in FY 2024/2025, reaching LE 1.92 trillion compared to LE 1.36 trillion the previous year. Meanwhile, total revenues climbed to **LE 2.63 trillion--around 15 percent of GDP--**up from LE 2 trillion in FY 2023/2024.
The overall budget deficit reached LE 1.29 trillion, equivalent to 7.4 percent of GDP, slightly above the Finance Ministry's original target of LE 1.243 trillion.
The minister explained that about LE 440 billion was allocated to cover energy sector challenges, secure petroleum supplies, and settle dues with foreign partners. These measures ensured uninterrupted electricity generation and a stable energy supply for both productive and investment activities.
Kouchouk further highlighted government guarantees worth LE 94 billion to strengthen the transport sector. This included LE 74 billion for the National Authority for Tunnels and LE 13.5 billion for the National Railways Authority, aimed at improving public services.
On the revenue side, tax collections rose to 12.6 percent of GDP (LE 2.2 trillion), compared to 11.7 percent of GDP in FY 2023/2024. According to Rasha Abdel Aal, Head of the Egyptian Tax Authority, the increase came from a 35 percent rise in both income tax and VAT, a 61 percent jump in taxes on imported goods, and a 65 percent surge in excise taxes.
Meanwhile, Finance Ministry figures revealed that public investment dropped 23 percent to LE 382 billion, versus a budgeted target of LE 496 billion for the last fiscal year.The external debt of Egypt's budgetary authorities declined by nearly $4 billion over the past two years, including $1 billion last year--equivalent to a 10 percent reduction relative to GDP. By the end of June, external debt stood at 85 percent of GDP, according to Minister of Finance Ahmed Kouchouk.
Speaking at a press conference on Saturday to present the results of fiscal year 2024/2025, the minister announced that a Medium-Term Debt Strategy will be released before December. The strategy aims to lower public debt levels and ease repayment obligations by strengthening the regulatory framework for risk management and conducting a full assessment of debt markets.
Kouchouk noted that the average maturity of public debt rose from 1.2 years in June 2024 to 1.6 years by the end of the past fiscal year. He also confirmed that Egypt will continue cutting external debt linked to budget financing by $1-2 billion annually.
According to Finance Ministry data, domestic debt servicing consumed 64.3 percent of total revenues, while domestic interest payments accounted for 43.4 percent of total expenditures.
Interest payments alone absorbed 73 percent of public revenues in FY 2024/2025, reaching LE 1.92 trillion compared to LE 1.36 trillion the previous year. Meanwhile, total revenues climbed to **LE 2.63 trillion--around 15 percent of GDP--**up from LE 2 trillion in FY 2023/2024.
The overall budget deficit reached LE 1.29 trillion, equivalent to 7.4 percent of GDP, slightly above the Finance Ministry's original target of LE 1.243 trillion.
The minister explained that about LE 440 billion was allocated to cover energy sector challenges, secure petroleum supplies, and settle dues with foreign partners. These measures ensured uninterrupted electricity generation and a stable energy supply for both productive and investment activities.
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Kouchouk further highlighted government guarantees worth LE 94 billion to strengthen the transport sector. This included LE 74 billion for the National Authority for Tunnels and LE 13.5 billion for the National Railways Authority, aimed at improving public services.
On the revenue side, tax collections rose to 12.6 percent of GDP (LE 2.2 trillion), compared to 11.7 percent of GDP in FY 2023/2024. According to Rasha Abdel Aal, Head of the Egyptian Tax Authority, the increase came from a 35 percent rise in both income tax and VAT, a 61 percent jump in taxes on imported goods, and a 65 percent surge in excise taxes.
Meanwhile, Finance Ministry figures revealed that public investment dropped 23 percent to LE 382 billion, versus a budgeted target of LE 496 billion for the last fiscal year.
Egypt Today
