In a step towards a more efficient system, the Egyptian government began discussing the process of shifting the support system towards direct cash support instead of providing food products at reduced prices, after previous attempts to reform this sensitive program led to a wave of protests.
This measure towards cash support is of great importance after many years during which the Egyptian government provided support for bread and other basic commodities to most of the population.
Egypt spends about 370 billion pounds ($7.6 billion) on direct support, according to the 2024/2025 budget statement, with 36% of it going to support food.
More than 60 million people can buy basic foodstuffs – such as pasta, cooking oil and sugar at reduced prices – while at least 10 million others benefit from the huge bread subsidy system.
Egyptian President Abdel Fattah El-Sisi and senior ministers have criticized the current support system for months, saying that it does not benefit the most vulnerable groups while imposing a heavy burden on the state’s public finances.
In turn, Minister of Supply Sherif Farouk expressed his hope that the cash support system will be implemented nationwide at the beginning of the new budget.
The minister explained that the program will be implemented gradually and experimentally in selected areas before it is fully rolled out.
Last August, the International Monetary Fund – which is implementing a new support program worth $8 billion with Egypt – said that reducing non-targeted support would provide more space for social protection and human capital development.
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2024-10-02 10:59:35