Egypt’s Finance Minister, Mohamed Mait, announced that the country’s 2024/2025 Budget will earmark $2.66 billion for bread subsidies and $3.13 billion for petroleum product subsidies.
According to Reuters, Egypt stands as one of the world’s largest wheat importers and relies on imports for other essential food and fuel items. The nation currently grapples with foreign currency shortages, significant budget deficits, and balance of payments deficits.
Mait stated that a total of $12.67 billion has been allocated for social security programs, with $134 billion Egyptian pounds specifically designated for food subsidies.
Egypt’s subsidy program extends subsidized prices for staples like bread, rice, and sugar to nearly 60 million citizens out of a total population of 105 million.
The Finance Minister attributed the increase in petroleum subsidies to rising global oil prices and the impact of foreign exchange rate fluctuations.
In March, Egypt allowed its pound to depreciate to approximately 47 pounds to the dollar, while the central bank raised key interest rates by 600 basis points.
Currently, Egypt’s currency is fixed at around 31 pounds against the dollar for a year.
Mait stated that Egypt’s total expenditure for the upcoming fiscal year, starting July 1st, is projected to reach 3.9 trillion pounds ($82.89 billion), with revenue expected to amount to 2.6 trillion pounds.
What to Know
- Egypt just lately signed an $8 billion expanded mortgage settlement with the Worldwide Financial Fund (IMF).
- The world financial institution has additionally pledged to help Egypt with $6bn within the area of three years.
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