CAIRO, March 26 (Xinhua) -- Egypt's government on Thursday approved the state budget for the 2026/2027 fiscal year, with total expenditures estimated at 5.1 trillion Egyptian pounds (1 U.S. dollar equals around 52.7 Egyptian pounds), according to a cabinet statement.

This photo taken on June 8, 2023 shows the building of Cabinet of Ministers in the New Administrative Capital (NAC), some 50 km east of the capital Cairo, Egypt. (File photo: Xinhua)

"We target a 27.6 percent increase in public revenues to about 4 trillion pounds, and a 13.2 percent rise in expenditures to 5.1 trillion pounds," Finance Minister Ahmed Kouchouk said in the statement.

The budget allocates 832.3 billion pounds for social protection, a 12 percent increase from the previous year, aimed at supporting the most vulnerable groups, the minister added.

The government also earmarked 90 billion pounds for programs supporting economic activity, with incentives linked to "tangible results on the ground," Kouchouk said.

He emphasized that the budget "sides with citizens and investors and supports economic activity," noting that spending priorities include health, education, social protection, and support for production and exports.

Egypt aims for a primary surplus of 1.2 trillion pounds, equivalent to 5 percent of gross domestic product, to help reduce public debt and expand fiscal space for social spending.

The cabinet, chaired by Prime Minister Mostafa Madbouly, approved the budget after it was presented to President Abdel-Fattah al-Sisi alongside the economic and social development plan for the same fiscal year.

Egypt's fiscal year runs from July 1 to June 30 of the following year.