Finance Ministry stands its ground on subsidies

Finance Ministry stands its ground on subsidies as El Moselhy takes over Supply Ministry: It is unlikely that more subsidized goods will be tacked on to the subsidies system in the near future, said Deputy Finance Minister Mohamed Maait. He tells Al Mal that raising the monthly allotment of subsidized goods to EGP 21 from EGP 18 has raised the monthly expenditure the line item to EGP 2.2 bn from EGP 1.7 bn, not to mention that the float has raised the costs of importing wheat for subsidies and other goods by EGP 500 mn. Maait’s position hints it is unlikely the government will make further concessions on subsidies. Under pressure from MPs, outgoing Supply Minister Mohamed Ali El Sheikh had appeared to leave the door open to a revisiting of the commodity subsidy program. Newly appointed Supply Minister Ali El Moselhy, an MP and head of the House Economics Committee, had been among those putting pressure on El Sheikh.