Minister of Finance announces substantial rise in Egypt's social protection budget to EGP 635.9 billion for fiscal year 2024/2025.
Egypt's Minister of Finance, Dr. Mohamed Maait, has affirmed that in accordance with President Sisi's directives to alleviate burdens on citizens, the budget for social support and protection has been raised to EGP 635.9 billion for the new fiscal year 2024/2025, compared to EGP 529.7 billion in the current fiscal year, representing an annual growth rate of 20%. This reflects the state's commitment to continuously support low and middle-income families in the path of economic reform.
The government is working to ease the burden on citizens within the framework of policies dealing with the successive global and regional crises and their negative effects on the Egyptian economy, by expanding the social protection network targeting the most vulnerable and needy groups, in a manner that complements efforts to improve living standards.
The minister stated that EGP 134.2 billion has been allocated in the new budget to support food commodities, compared to EGP 127.7 billion in the current fiscal year, with an annual growth rate of 5.1%. Additionally, EGP 154.5 billion has been allocated to support petroleum products, compared to EGP 119.4 billion, representing an increase of 29.4%.
Furthermore, the minister announced an increase in support for social housing programs in the new budget by 16.5%, reaching EGP 11.9 billion compared to EGP 10.2 billion in the current fiscal year. The budget also allocates EGP 10.1 billion for citizens' medical treatment at the state's expense, compared to EGP 8.1 billion in the current fiscal year, with an annual growth rate of 24.7%. Additionally, EGP 8.3 billion is allocated for health insurance and medicines, compared to EGP 6 billion, representing a 38.3% increase over the current fiscal year.
The minister highlighted that EGP 215 billion has been allocated in the new budget to support social insurance, contributing to the pension system and implementing agreements to resolve complexities despite the severity of global and regional challenges and their impact on public finances. This ensures the provision of the necessary financial liquidity to serve pensioners, their beneficiaries, and those insured, while fulfilling all obligations towards them.
Maait emphasized efforts to strengthen the national economy by continuing to support productive and export activities to stimulate the private sector in production, meet local market needs, and export surpluses abroad. This includes expanding the export base with more competitive Egyptian products.
Furthermore, EGP 17.5 billion has been allocated in the new budget for the initiative to support interest rates in credit facilities for industrial and agricultural production activities. The state shares financing burdens with investors as part of a strategy to create an attractive investment environment. Additionally, EGP 23 billion has been allocated to support and stimulate exports.
