{"id":556223,"date":"2021-10-17T03:58:17","date_gmt":"2021-10-17T03:58:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/17\/el-sisi-says-egypt-needs-a-more-effective-more-digitized-welfare-system\/"},"modified":"2021-10-17T03:58:17","modified_gmt":"2021-10-17T03:58:17","slug":"el-sisi-says-egypt-needs-a-more-effective-more-digitized-welfare-system","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/17\/el-sisi-says-egypt-needs-a-more-effective-more-digitized-welfare-system\/","title":{"rendered":"El Sisi says Egypt needs a more effective, more digitized welfare system"},"content":{"rendered":"

<\/a> President Abdel Fattah El Sisi has called for a modernized, digitized <\/strong>ration card program<\/strong>, saying the government has long struggled to ensure the costly scheme directly benefits those most in need. Speaking at the inauguration of new social housing projects, El Sisi said the slow pace at which government data has been digitized has led to large-scale misallocation of welfare subsidies, meaning ration cards sometimes make it into the wrong hands. \u201cI even have a [ration] card under my name in Minya that\u2019s in use,\u201d El Sisi said (watch, runtime: 5:48<\/a>). Bloomberg<\/a> also took note of the story.<\/p>\n

This phenomenon has for years given rise to those that we here at Enterprise have fondly refer to as Kramers<\/strong> (our in-house term for subsidy moochers or fraudulent beneficiaries of the subsidy system). Supply Minister Ali El Moselhy said last year<\/a> that the government has barred at least 10 mn alleged welfare cheats from receiving subsidies, bringing down the number of subsidy recipients to 70 mn from 80 mn, and saving the state coffers some EGP 5 bn.<\/p>\n

Efforts to more accurately assess subsidy eligibility made the news back in 2018<\/strong>, when the ministry said it planned to use a wider basket of data points to determine who deserves to be on the subsidy rolls. At the time<\/a>, the amended standards made ineligible citizens who pay EGP 1.2 or more per month on electricity, spend more than EGP 500 per month on mobile phone bills, pay for more than one mobile phone line, or own a \u201cmodern car.\u201d<\/p>\n

However, authorities last June expanded ration card eligibility<\/strong>, giving individuals earning less than EGP 2.4k a month the right to hold the cards after having limited the monthly salary cap to EGP 1.5k. The changes were in keeping with the recent bump in basic salaries for public sector workers to EGP 2.4k from EGP 2k<\/a>, which effectively raised the nation\u2019s poverty line.<\/p>\n

We also noted last year that the government added 1 mn newborns on the cards<\/strong>, from an existing backlog of requests to add 6-7 mn others<\/a>. In his statements yesterday, El Sisi identified rapid population growth as the main reason behind Egypt\u2019s inflated ration card system.<\/p>\n

This isn\u2019t the only thing in store: <\/strong>The president\u2019s calls for a more digitized ration card scheme follows calls he made earlier this year<\/a> to revise a parallel bread subsidies scheme.<\/p>\n

Could the Cash Subsidies Act save the day? <\/strong>The bill, which has been in the works since right before the pandemic hit in early 2020, was expected to govern a new system of direct money transfers<\/a> instead of the current setup of in-kind subsidies using ration cards. It was sent to the House of Representatives back in July 2019<\/a>, but has been in limbo since. Our best guess is that, well, covid happened.<\/p>\n","protected":false},"excerpt":{"rendered":"

President Abdel Fattah El Sisi has called for a modernized, digitized ration card program, saying the government has long struggled to ensure the costly scheme directly benefits those most in need. Speaking at the inauguration of new social housing projects, El Sisi said the slow pace at which government data has been digitized has led […]<\/p>\n","protected":false},"author":1,"featured_media":556224,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[96,317,104,72,190,98],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-556223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-abdel-fattah-el-sisi","tag-commodities","tag-economy","tag-enterpriseam","tag-social-welfare","tag-subsidies","wpautop","entry"],"acf":{"mongo_id":"05c9f0e9-8d6d-49b5-b9c7-35143427e1a8","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/10\/175.jpg","photo_position":"above","related_issue":[556215],"teaser":"","voice_url":""},"yoast_head":"\nEl Sisi says Egypt needs a more effective, more digitized welfare system - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/17\/el-sisi-says-egypt-needs-a-more-effective-more-digitized-welfare-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"El Sisi says Egypt needs a more effective, more digitized welfare system\" \/>\n<meta property=\"og:description\" content=\"President Abdel Fattah El Sisi has called for a modernized, digitized ration card program, saying the government has long struggled to ensure the costly scheme directly benefits those most in need. 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The move away from in-kind subsidies\u2026","rel":"","context":"In "Policy"","block_context":{"text":"Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/7.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":554196,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/23\/new-ration-card-eligibility-standards-coming\/","url_meta":{"origin":556223,"position":1},"title":"New ration card eligibility standards coming?","author":"enterpriseam admin","date":"23 December 2021","format":false,"excerpt":"Newly married individuals \u201cshouldn\u2019t\u201d be able to receive subsidy ration cards, President Abdel Fattah El Sisi said in televised remarks yesterday (watch, runtime 5:18). 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The government has plans to battle inflation and expand the social\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":601609,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/03\/05\/el-sisi-meets-with-officials-to-discuss-social-welfare-programs\/","url_meta":{"origin":556223,"position":3},"title":"El Sisi meets with officials to discuss social welfare programs","author":"enterpriseam admin","date":"5 March 2019","format":false,"excerpt":"El Sisi pushes for efforts to support vulnerable groups: President Abdel Fattah El Sisi\u2019s meeting with officials to discuss social welfare programs to support vulnerable groups topped the front pages of all three state-owned newspapers this morning (Al Ahram | Al Gomhuria | Al Akhbar).","rel":"","context":"In "ON THE FRONT PAGES"","block_context":{"text":"ON THE FRONT PAGES","link":"https:\/\/enterpriseam.com\/egypt\/category\/on-the-front-pages\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":575833,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/28\/egypt-to-expand-program-to-support-poor-students\/","url_meta":{"origin":556223,"position":4},"title":"Egypt to expand program to support poor students","author":"enterpriseam admin","date":"28 October 2020","format":false,"excerpt":"SMART POLICY- As many as 1 mn additional students are lined up for state support to fund their education under a new directive by President Abdel Fattah El Sisi, Social Solidarity Minister Nevine El Kabbaj said. The support will be given to students from families that were either found ineligible\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":558303,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/04\/subsidized-bread-to-rise-in-price-for-first-time-in-a-generation\/","url_meta":{"origin":556223,"position":5},"title":"Subsidized bread to rise in price for first time in a generation","author":"enterpriseam admin","date":"4 August 2021","format":false,"excerpt":"SMART POLICY- Subsidized bread prices may increase for the first time in decades, after President Abdel Fattah El Sisi raised the prospect in a speech yesterday on the sidelines of an event that marked the opening of state-owned complex that will produce meals for school children (watch, runtime: 2:11). The\u2026","rel":"","context":"In "SUBSIDIES"","block_context":{"text":"SUBSIDIES","link":"https:\/\/enterpriseam.com\/egypt\/category\/subsidies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/81.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=556223"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556223\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/556215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/556224"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=556223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=556223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=556223"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=556223"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=556223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}