Cairo: The external debt of Egypt's budgetary authorities has decreased by nearly $4 billion over the past two years, including a $1 billion reduction last year, which equates to a 10 percent decrease relative to GDP. By the end of June, external debt accounted for 85 percent of GDP, as per Minister of Finance Ahmed Kouchouk.
According to State Information Service Egypt, during a press conference on Saturday, August 31st, 2025, that showcased the fiscal results for 2024/2025, Minister Kouchouk revealed plans to introduce a Medium-Term Debt Strategy by December. This strategy is designed to reduce public debt levels and alleviate repayment obligations by enhancing the regulatory framework for risk management and performing a comprehensive assessment of debt markets.
Kouchouk highlighted that the average maturity of public debt increased from 1.2 years in June 2024 to 1.6 years by the end of the fiscal year. He also assured that Egypt plans to continue reducing external debt associated with budget financing by $1-2 billion annually.
Finance Ministry data indicates that 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, amounting to LE 1.92 trillion compared to LE 1.36 trillion the previous year. Total revenues rose to LE 2.63 trillion, representing approximately 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 exceeding the Finance Ministry's original target of LE 1.243 trillion. The minister explained that approximately LE 440 billion was allocated to address energy sector challenges, secure petroleum supplies, and settle dues with foreign partners, ensuring uninterrupted electricity generation and stable energy supply for productive and investment activities.
Kouchouk also underscored government guarantees worth LE 94 billion to bolster the transport sector, including LE 74 billion for the National Authority for Tunnels and LE 13.5 billion for the National Railways Authority, aimed at enhancing 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 resulted 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, compared to a budgeted target of LE 496 billion for the last fiscal year.