CAIRO: Egypt’s Finance Ministry has provided an additional budget allowance of around 4 billion EGP to cover urgent needs to the ministries of Supply, Transportation, Electricity, and Petroleum, it said in a Sunday statement.
The allowance is aimed to improve the public services and provide the basic commodities for citizens, the statement read.
It added that the allowance is expected to provide for 1.5 billion EGP in ration card subsidies for June, 500 million EGP for additional Ramadan food supplies, and 1.5 billion EGP to repay milling companies’ dues.
Further, 1.855 billion EGP will be allocated for electricity subsidies for June and 158.6 million EGP for the delivery of natural gas to homes.
On Thursday, Egypt’s cabinet approved an initial draft of the state budget for the new fiscal year (FY) 2015/2016 (to start July 1) with a deficit projected to reach 281 billion EGP (9.9 percent of GDP,) compared to 10.8 percent of GDP forecasted in the current FY.
In the draft budget, expenditure on social programs is projected to amount to 431 billion EGP, nearly 49 percent of total public expenditure and a 12 percent up from the current fiscal year.
“Achieving social equality and improving the standard of living for those in need is the focal point of this budget,” Finance Minister Hani Kadry said in a statement.
The draft has yet to be submitted to President Abdel Fattah al-Sisi for ratification.