Islamic Finance

Egypt to spend additional USD 4bn on social safety

| 21 June, 2017

Wed June 21, 2017 | 4:48pm | SAO PAULO

From the Newsroom*

Egypt will allocate an additional EGP 75 billion (USD 4.13 billion) to social safety-related spending during the 2017/2018 fiscal year which begins in July. The move was ordered by president Abdel Fattah El Sisi to implement measures designed to improve economic conditions for the population, local newspaper Al-Ahram reported.

Food subsidy cards will increase from EGP 21 (USD 1.15) to EGP 50 (USD 2.75) per person.

Al-Ahram said this will mean a 140% increase in the total amount made available by the government for these cards, from EGP 45 billion (USD 2.48 billion) to EGP 85 billion (USD 4.68 billion).

According to Finance minister Amr El-Garhy, the move will raise the total budget to EGP 1.2 trillion (USD 66.14 billion). Despite the increase in spending, El-Garhy said the government will still work to keep the budget deficit at 9.1% of GDP.

Egypt’s president also ordered an increase in state pension payments and basic salaries for public sector employees. Al-Ahram said this is in line with earlier promises to ease austerity measures on low-income citizens.

*Translated by Gabriel Pomerancblum

Copyright Brazil-Arab News Agency