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Monday, 27 December 2021

A “clear vision” on subsidies coming in early 2022?

The government will set out a “clear vision” on subsidies when preparing next fiscal year’s state budget in March, Prime Minister Moustafa Madbouly said on Thursday. Speaking at a press conference to mark the first cabinet meeting to be held in the new administrative capital, Madbouly said that the government must strike a balance between providing support to citizens and maintaining the country’s economic performance, especially given global inflationary pressures and a rapidly increasing population.

Inflationary pressures are set to impact subsidies: Egypt is not immune from the squeeze on commodities, rising shipping costs and higher input costs seen worldwide, Madbouly said, adding that it wouldn’t be logical for local prices to remain fixed given the wider inflationary environment. His comments came a day after President Abdel Fattah El Sisi suggested that new rules could come into effect on eligibility for subsidy ration cards, as the government continues to reform the subsidy system to reduce its burden on the state budget.

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