{"id":585588,"date":"2023-04-26T00:00:00","date_gmt":"2023-04-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/26\/govt-to-boost-social-safety-spending-in-next-budget\/"},"modified":"2023-04-26T00:00:00","modified_gmt":"2023-04-26T00:00:00","slug":"govt-to-boost-social-safety-spending-in-next-budget","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/26\/govt-to-boost-social-safety-spending-in-next-budget\/","title":{"rendered":"Gov\u2019t to boost social safety spending in next budget"},"content":{"rendered":"

<\/span>The Madbouly <\/span>government is<\/span> set to increase spending on subsidies and <\/span>social safety programs<\/span> by almost 50% in FY 2023-2024 as it looks to offset the impact of soaring inflation on household budgets. Spending on social safety programs will rise to EGP 529.7 bn from EGP 358.4 bn in FY 2022-2023, and more money will be allocated to food and fuel subsidies, the Finance Ministry <\/span>said<\/a><\/span> Sunday. <\/span>\u201cThis enables the state to expand the social protection network that targets the most vulnerable and needy families . . . to improve [their] standard of living,\u201d the statement reads. The fiscal year <\/span>runs from 1 July 2023 to 30 June 2024.<\/span><\/p>\n

Food + fuel subsidies to rise:<\/span> The ministry has allocated EGP 127.7 bn to food subsidies, up 42% from the current fiscal year, and EGP 119.4 bn to subsidize petroleum products. <\/span><\/p>\n

That\u2019s more than we anticipated: <\/span>A draft budget <\/span>approved<\/a><\/span>by the Madbouly cabinet in March put social spending for FY 2023-2024<\/span> at an estimated EGP 455 bn, food subsidies at EGP 108 bn, and fuel subsidies at EGP 35.9 bn.<\/span><\/p>\n

Remember:<\/span> Inflation <\/span>climbed to its highest level<\/a><\/span> since mid-2017 last month due to a series of currency devaluations triggered by the fallout from the war in Ukraine. Headline urban inflation reached 32.7% during the month, underpinned by soaring food prices which reached new record highs.<\/span><\/p>\n

ICYMI- The budget increase follows other gov\u2019t moves aimed at cushioning inflation:<\/span> An <\/span>EGP 150 bn<\/a><\/span> government package came into effect at the <\/span>start of April<\/a><\/span> that includes EGP 10 bn in wage and pension hikes and a 25% increase in cash transfers under the Takaful and Karama social support program. <\/span><\/p>\n

MORE EXPORT + INDUSTRY SUPPORT-<\/span><\/p>\n

Export subsidies and subsidized loans for industry to expand:<\/span> The ministry has allocated <\/span>EGP 28.1 bn to export subsidies, up more than fourfold from the EGP 6 bn paid out this year, and will increase spending on its <\/span>subsidized loan program<\/a><\/span> for agriculture and industry players to EGP 19.5 bn \u2014 up from the <\/span>projected EGP 13 bn<\/a><\/span>.<\/span><\/p>\n

Remember:<\/span> Developing local industry and raising exports are two of the government\u2019s top economic priorities. Recent months have seen a raft of new policies designed to attract foreign investment and localize industrial production.<\/span><\/p>\n

Also in the budget: <\/span>The government will spend some EGP 8 bn to provide healthcare, EGP 6 bn for health ins. and medicines, and EGP 10.2 bn to support social housing. <\/span>It will also spend some EGP 45 bn on local wheat during this harvest season after <\/span>hiking its purchase price<\/a><\/span> by 74% to EGP 1.5k per ardeb, the Finance Ministry said in a separate <\/span>statement<\/a><\/span>.<\/span><\/p>\n

** We\u2019re still waiting to see the draft budget in full:<\/span> The government <\/span>handed the draft budget over to the House<\/a><\/span> for discussion earlier this month after giving its sign-off on the proposed spending plans for the year ahead.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

FinMin also promises more for export subsidies + support for manufacturers<\/p>\n","protected":false},"author":1,"featured_media":585589,"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":[7413],"tags":[279,317,72,182,190,98,563],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-585588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget-watch","tag-budget-watch","tag-commodities","tag-enterpriseam","tag-inflation","tag-social-welfare","tag-subsidies","tag-wheat","wpautop","entry"],"acf":{"mongo_id":"03107bec-3f25-480c-a619-ee066c47dbb0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/4\/797.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt 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