Egypt’s Finance Ministry announced that the country will allocate over 125 billion Egyptian pounds ($2.66 billion) for bread subsidies in its upcoming 2024/2025 state budget, along with more than 147 billion pounds for petroleum product subsidies. This move comes as part of Egypt’s efforts to address economic challenges and ensure food security for its population.
The statement quoted Finance Minister Mohamed Maait, who highlighted the importance of these subsidies in supporting millions of Egyptians. Egypt, a significant importer of wheat and other essential foods, recently secured an $8 billion expanded loan deal with the International Monetary Fund, following a substantial devaluation of its currency.
Since the beginning of the year, Egypt has released goods and merchandise worth $14.5 billion, although importers have faced difficulties accessing foreign currency, resulting in delays in clearing goods from ports.
In addition to food subsidies, a significant portion of the budget—596 billion Egyptian pounds—is earmarked for social protection programs, with 134 billion pounds specifically allocated for food subsidies. These subsidies play a crucial role in providing essential items like bread, rice, and sugar at reduced prices to a substantial portion of Egypt’s population, which exceeds 105 million.
Maait emphasized the necessity of petroleum product subsidies, citing the impact of global oil price increases and exchange rate fluctuations. The total expenditures for the upcoming fiscal year, starting on July 1, are estimated at 3.9 trillion pounds, with revenues expected to reach 2.6 trillion pounds.
