Expanding the social safety net and increasing commodity subsidies through the ration card program will cost the state an additional EGP 8 bn in FY2016-17, said Deputy Finance Minister Mohamed Maait. Expanding coverage in the Takaful and Karama welfare programs to c. 1.5 mn families will cost EGP 3 bn, while raising the allocation of commodities on ration cards to EGP 21 per month from EGP 18 will rack up a EGP 5 bn tab, he tells AMAY. These costs do not even factor in the raising the price the government pays farmers on crops. Maait says that the government may not have to amend the FY2016-17 budget or go Parliament to request additional credit, as the budget has reserves on hand to cover the increases.

This comes as the Supply Ministry issued a statement reassuring moochers everywhere that 10 mn Kramers will not lose their welfare benefits under the supply smart card system, Al Mal reports. As we noted earlier this week, 3-4 mn had been slated for removal from the system during the first phase of the purge. Reports had emerged last month citing ministry sources that the government was aiming to get 10 mn people who were not entitled to subsidies off of the welfare rolls. Those targeted are not qualified beneficiaries, have duplicate cards or are using the cards of dead people or citizens living abroad, the government said at the time.