Govt raises social expenditure by 29%

The government has increased allocations to social services in the new fiscal year to LE213.2 billion, Minister of Finance Youssef Boutros-Ghali announced in a statement on Friday.

The social services are a cornerstone in Egyptian fiscal policy, said Boutros-Ghali’s statement. He added that allocations to that section of the budget are up 29 percent from last year.

The minister added that LE48.37 billion will got to education. Another LE101.77 billion will be earmarked for subsidies, of which LE12.757 are for basic food supplies and LE1.763 for supplementary food supplies. Petroleum products will receive LE67.68 in subsidies, of which LE31.908 will be allocated to oil, LE13.286 to butane, LE9.973 to gasoline, LE6.908 billion to natural gas, and LE5.241 billion to diesel.

The minister also specified that electricity will be subsidized by LE6.3 billion. Another LE4 billion will be allocated to the activation of exports, and LE600 million to subsidize industrial development, one third of which will go to Upper Egyptian governorates.

Boutros-Ghali added that a new form of subsidy–the value of which is LE1200 billion–will be introduced this year. The government will use it to purchase local wheat at a price higher than the international price by LE600 per ton.

The government will also allocate LE29.957 billion to pension and social security plans. Finally, LE19.171 billion will be earmarked for health programs.

Translated from the Arabic Edition.

Related Articles

Back to top button