The Egyptian government has allocated LE596 billion (US$12.66 billion) to the support system, as part of the upcoming draft budget (2024/2025) in order to reduce the burdens on middle and low-income people impacted by rising inflation rates and the erosion of the pound.
Egyptian Finance Minister Mohamed Maait said in an interview with local media and journalists on Tuesday that government support allocations include LE134 billion for food supplies, more than LE147 billion to support petroleum products, and LE40 billion for the “Solidarity and Dignity” program.
The Egyptian government in December raised the target of subsidizing petroleum products in the current fiscal year by about nine percent to LE130 billion, a government official told Al-Sharq.
Maait explained on Tuesday that the increase in support for petroleum products comes as a result of the rise in global oil prices and the change in the exchange rate, which is a major challenge to the state’s public finances.
Subsidizing bread exceeds LE125 billion, he said, after expectations that its cost would exceed 125 piasters while citizens only pay five piasters.
Egypt agreed with the International Monetary Fund to increase the value of the financing program granted to the country from three billion dollars to eight billion, after the measures taken by Cairo recently which included significantly devaluing the currency and raising interest rates by about 600 basis points.
