Egypt Allocates EGP 80B to Boost Startups Driving Production

An allocation of LE 80 billion has been set aside in Egypt’s FY2026/27 draft budget to support production, manufacturing, entrepreneurship and exports, according to Finance Minister Ahmed Kouchouk.

The package includes LE 48 billion for export rebate programmes, LE 6.7 billion to support the tourism sector and LE 6 billion in financing facilities for productive sectors, forming part of a broader push to expand economic activity and strengthen export performance.

Kouchouk said the draft budget projects public revenues of LE 4 trillion, representing a 30% increase, against expenditures of LE 5.1 trillion, up 13.2%. He added that the framework is designed to meet basic needs, improve public services and support economic stability, with adjustments made to address potential risks.

Beyond production-focused allocations, the draft budget sets aside LE 90.5 billion for the Unified Procurement Authority to supply medicines and medical equipment, alongside LE 7.8 billion for pre-university textbooks and LE 7 billion for school nutrition programmes.

Public sector wages are allocated LE 821 billion, while subsidies and social protection total LE 832.3 billion. This includes LE 178.3 billion for food subsidies and LE 55.3 billion for social programmes such as Takaful and Karama.

Additional allocations include LE 120 billion for energy support and structural adjustments, LE 13 billion for housing for low- and middle-income groups and LE 4.3 billion for informal area development. The budget also earmarks LE 69.1 billion to purchase locally produced wheat, following an increase in procurement prices this season.

On fiscal targets, the government aims to achieve a primary surplus of 5%, reduce the overall deficit to 4.9% of GDP and bring the debt-to-GDP ratio down to 78% by June 2027. External debt is projected to decline by $1 billion to $2 billion annually, alongside plans to reduce financing needs and debt service costs over the medium term.