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President Abdel Fattah El Sisi of Egypt has approved the issuance of tax warrants financed by taxes owed by taxpayers, aimed at providing liquidity and reducing reliance on traditional borrowing. The proceeds will be allocated to lower financing needs and the public debt burden. This step comes as part of the government's efforts to enhance non-traditional sources of funding, especially given that external debt rose to $164.8 billion by the end of March 2026, and government debt payable increased to $82.8 billion. This type of financing tool is considered stimulus-friendly, especially since the Egyptian economy recorded real growth of 5.2% in the first nine months of 2025-2026. However, experts warn that relying on such warrants could create pressure on future revenues and impact economic growth and the private sector.
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