As the most populous Arab country struggles with an economic crisis, Egypt will provide 127.7 billion Egyptian pounds ($4.14 billion) for its food subsidy program for the upcoming fiscal year beginning on July 1. This is an increase from 90 billion Egyptian pounds ($2.92 billion) the previous year.
According to official statistics, around a third of Egypt’s 105 million population lives in poverty. Many Egyptians rely on the government to maintain essential products cheap through state subsidies and other comparable programs.
Egypt has allocated 2.991 trillion pounds ($94.49 billion) in overall spending and 2.142 trillion pounds ($69.55 billion) in revenue for the upcoming year.
Additionally, the government has budgeted for a Brent crude price of $80 per barrel.
Real gross domestic product (GDP) growth of 4.1 percent and an average inflation rate of 16 percent are projected by the budget.
According to the assessment of Egypt’s finance ministry, 8.25 million tonnes of wheat will be required for the subsidy scheme. It is one of the top wheat importers in the world, and since Russia invaded Ukraine last year, which is one of the greatest wheat exporters in the world, its economy has suffered.
A huge power plant in Beni Suef, south of Cairo, may be sold for $2 billion in a transaction with Actis LLP and Edra Power Holdings Sdn Bhd, which might have a significant positive impact on the economy of the nation.
Egypt launched a strategy in April of last year to attract $10 billion in investments over the following four years, as well as the privatisations necessary to pay a number of impending international debt obligations.
More than 30 state-owned businesses that would be sold to investors this year were on a list released by Prime Minister Mostafa Madbouly in February.
A $460 million finance agreement for Cairo’s metro lines was inked by the nation and South Korea on Tuesday.
In an effort to further the government’s privatisation drive, the Egyptian finance ministry revealed last month that it had sold a 9.5 percent interest in state-controlled Telecom Egypt for 3.75 billion Egyptian pounds.
Egypt has been dependent on imports of essential goods and gasoline due to the ongoing turmoil.
Ali Moselhy, Egypt’s minister of supply and internal trade, stated on Monday that talks with Russia, China, and India on paying for imports using currencies other than dollars are still ongoing.