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Monday, 21 November 2016

Citizens making more than EGP 1,500 a month can keep their ration cards, after all

Supply Minister Mohamed Ali Elsheikh denied citizens with incomes exceeding EGP 1,500 a month or a monthly pension of more than EGP 1,200 will lose their ration cards. He clarified that what was meant by the assistant minister’s remarks on television on Saturday night applied only to new applicants only and not existing ration cardholders, meaning that the Ministry will not issue new ration cards to individuals who are at the income thresholds mentioned above. A Ministry source told Al Mal the government will begin removing people from the ration card system starting January 2017, but that the threshold will be higher than the EGP 1,200-1,500 a month mentioned. There are people on the ration card system who “earn larger salaries and pensions than this,” the source said, but did not specify who will be barred from the system or how it will be implemented.

Elsheikh appears to be hedging his bet on the honor system, urging citizens to snitch on moochers, deceased relatives or those living overseas. The ministry collect reports of benefits fraud from 1 December to 28 February, he added, reminding citizens of the Ismail cabinet’s incentives adopted last week to reward those who turn supergrass on their peers, according to Al Shorouk. His statements follow a meeting of the cabinet’s economic group on Sunday which looked at cutting subsidies. To get a picture of just how bloated the system is: a Planning Ministry official said that 77% of Egyptian citizens currently receive subsidies on basic commodities because “we have mechanisms that identify families in need of subsidies, but none that can help us eliminate those who should not be receiving them.” It’s a brave admission that — alongside putting the Armed Forces in charge of cleaning the database of eligible welfare recipients — tells us the Ismail government is serious about getting this right.

Meanwhile, the Social Solidarity Ministry reportedly plans to increase its budget for cash subsidies to EGP 14 bn from EGP 12.5 bn during the current fiscal year, Youm7 reports. The funds will be allocated to the Takaful and Karama cash benefit programs. Some 4.3 mn families will benefit from the two programs by the end of this fiscal year, according to Minister Ghada Waly.

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