News

Egypt Cabinet Approves EGP 8 Billion in Subsidies for Low-Income Citizens

Egypt Cabinet Approves EGP 8 Billion in Subsidies for Low-Income Citizens

A worker sells subsidized food commodities at a government-run supermarket in Cairo, Egypt, Feb.14, 2016 (Photo: Reuters)
A worker sells subsidized food commodities at a government-run supermarket in Cairo, Egypt, Feb.14, 2016 (Photo: Reuters)

Egypt’s cabinet of ministers approved the issuing of an EGP 8 billion fund to subsidize goods for low-income citizens, according to a statement published on the cabinet’s website on Wednesday.

The decision came as an “emergency measure” aimed at stabilizing the prices of basic goods in the market.

Speaking at the weekly cabinet meeting, supply minister Khaled Hanafy also said that the system for selling and distributing bread is currently being developed, in addition to implementing a points system that will give citizens access to basic goods free of charge.

Inflation in Egypt has been on the rise in recent years, as the country continues to struggle with difficult economic conditions, particularly a hard currency crisis compounded by the waning of the tourism industry.

However, the government has been working towards policy reforms – most notably slashing and reforming subsidies – in efforts to remedy the problems crippling the country’s economy.

In 2014, President Abdel Fattah Al-Sisi made the controversial decision to slash energy subsidies overnight, leading to drastically higher prices of fuel, angering several segments of the population, including taxi drivers and transport workers, as well as regular consumers. Defending the move, Sisi said the subsidies had failed to reach the people who they were aimed to help and instead mainly benefited the rich.

Former president Hosni Mubarak was careful not to touch the subsidies, being acutely aware of the potential danger such a move could pose to the stability of his regime.

In 1977, president Anwar Sadat slashed subsidies on basic foodstuffs, sparking a massive “bread uprising”, which was only ended with the deployment of security forces to the streets and the reenactment of the subsidy regime. Since then, Egypt’s leaders have been wary to raise prices on staples.

Egypt Buys Nine New Boeing Airplanes for $US 894 Million
Egypt Orders All Imams to Deliver Identical Friday Sermons

Subscribe to our newsletter


News

More in News

pol

Eight Policemen Killed in Attack in Egypt’s New Valley

Egyptian StreetsJanuary 17, 2017
Tiran Island

Egypt High Court Declares Void Transfer of Tiran and Sanafir to Saudi Arabia

Egyptian StreetsJanuary 16, 2017
Top-best-hd-wallpapers-dubai-skyline-hd-wallpapers-imagen-by-balamuda

Egyptians Invest EGP 13 Billion in Dubai Real Estate in 2016

Egyptian StreetsJanuary 15, 2017
A pharmacist searches for medicine at a pharmacy in Cairo, Egypt, November 17, 2016. REUTERS/Mohamed Abd El Ghany

Medicine Prices in Egypt Increased by up to 20%

Egyptian StreetsJanuary 13, 2017
Navy officers appear to be handing out water bottles to a group of refugees who were prevented from illegally migrating in September 2015. Credit: Military Spokesman

Egypt Prevents 12,192 from Illegally Migrating in 2016

Egyptian StreetsJanuary 12, 2017
Photograph released by the Ministry of Antiquities

3,500-Year-Old Ancient Egyptian Tombs Unearthed in Aswan

Egyptian StreetsJanuary 12, 2017
egypt-taba-beach-movenpick-resort

Egypt Introduces New Security Measures for Everyone Travelling to South Sinai

Egyptian StreetsJanuary 12, 2017
burqa759

Morocco ‘Bans Sale of the Burqa’

Egyptian StreetsJanuary 11, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.