Egypt raises social spending, food subsidies to offset inflation

Egypt raises social spending, food subsidies to offset inflation

Egypt raised funding for its overall social protection programs by 48 percent for the 2023-24 fiscal year to EGP 529.7b ($17.1 billion) from EGP358.4b in 2022-23, the finance ministry said in a statement.

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The increase aims to alleviate the burden of citizens from the global inflationary wave that’s pushed up prices for basic goods. Egypt aims to expand the social protection network for the most vulnerable and needy families.

Food subsidies will rise to EGP127.7b in 2023/24 from EGP90b, the ministry said. Egypt allocated EGP 119.4b to fuel subsidies in new budget.

Egypt’s consumer prices climbed an annual 32.7 percent in March, the fastest in almost six years. Food prices have spiraled up in step with a devaluation in the Egyptian pound.

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Egypt’s headline inflation rate increased to 32.7 percent in March