President Abdel Fattah El-Sisi met with Prime Minister Mostafa Madbouly and Minister of Finance Ahmed Kouchouk to review proposals for increasing wages for public sector employees, with an official announcement expected in the coming period.

The Finance Minister stated that key fiscal policy priorities include delivering meaningful increases in spending on health and education, raising teachers’ salaries, and implementing real wage increases for government employees linked to performance excellence and exceeding inflation rates.

The meeting also reviewed short- and medium-term fiscal policy priorities for the FY 2026–2027 budget, including establishing new partnerships with the business community to strengthen confidence, improve services, and enhance policy clarity.

Targets outlined during the meeting include achieving 5.4% economic growth, stabilizing inflation, allocating EGP 90 billion to programs supporting economic activity tied to measurable outcomes, continuing energy support, and generating a primary surplus of EGP 1.2 trillion. He added that debt service indicators are expected to improve significantly alongside continued reductions in the debt-to-GDP ratio.

Plans also include implementing targeted tax and customs facilitation measures and expanding the tax base by improving compliance, without imposing new burdens on citizens or businesses.

The minister emphasized that fiscal policy will remain balanced between supporting economic growth and competitiveness while maintaining fiscal discipline.

The discussions also addressed targeted rates for growth, primary surplus, expenditures, and revenues, as well as ongoing efforts to maintain fiscal balance and improve overall economic performance, particularly in light of increasing regional challenges and their economic implications.

The Finance Minister reaffirmed that the government remains committed to structural reforms aimed at ensuring financial and economic stability while stimulating private sector growth. He also highlighted continued efforts to sustain economic activity, production, manufacturing, and exports through balanced, investment-friendly fiscal policies.

He further noted the government’s ongoing implementation of tax, customs, and real estate facilitation measures to ease burdens on citizens and investors.

The meeting reviewed key policies aimed at reducing government debt and lowering debt servicing costs, including measures to support higher growth rates, empower the private sector, rely on goods and services exports as a primary growth engine, boost productivity, expand spending on research and development, and encourage private investment.

President El-Sisi stressed the importance of continuing comprehensive institutional reforms to ensure fiscal discipline and sound governance through rationalizing public spending, strengthening public revenues, and reducing government debt, measures designed to enhance the economy’s resilience to various challenges.

He also underscored the need to intensify efforts to attract more local and foreign investment, maintain direct engagement with global investment communities, and clearly communicate Egypt’s economic measures to mitigate regional economic impacts.