By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    AAAM explores automotive investment opportunities in Egypt's East Port Said zone
    AAAM explores automotive investment opportunities in Egypt’s East Port Said zone
    June 3, 2023
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone
    June 1, 2023
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    Egypt, GIZ sign agreement of €8m to support e-government, innovation in management
    June 1, 2023
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    Egypt hosts InnoXera Summit on education in artificial intelligenceage
    June 1, 2023
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    June 1, 2023
  • Politics
    PoliticsShow More
    FM Shoukry attends inauguration ceremony of Turkish President
    FM Shoukry attends inauguration ceremony of Turkish President
    June 3, 2023
    1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting
    1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting 
    June 3, 2023
    India train crash kills at least 207, injures hundreds 
    India train crash kills at least 207, injures hundreds 
    June 3, 2023
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    Madbouly reaffirms Egypt’s unwavering assistance for Palestine
    June 1, 2023
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    Egypt reiterates firm position in support of Palestinian cause: Shoukry
    June 1, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Increased cash support for subsidy cardholders is not enough: expert
Share
Notification
Latest News
AAAM explores automotive investment opportunities in Egypt's East Port Said zone
AAAM explores automotive investment opportunities in Egypt’s East Port Said zone
Business
FM Shoukry attends inauguration ceremony of Turkish President
FM Shoukry attends inauguration ceremony of Turkish President
Politics Egypt World
1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting
1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting 
Politics Egypt
India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
Adding flavour of innovation to F&B industry in Africa
Adding flavour of innovation to F&B industry in Africa 
Women
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Increased cash support for subsidy cardholders is not enough: expert
Business

Increased cash support for subsidy cardholders is not enough: expert

Hisham Salah
Last updated: 2016/11/05 at 5:27 PM
By Hisham Salah 3 Min Read
Share
The latest inflation report issued by the Central Agency for Public Agency for Public Mobilization and Statistics (CAPMAS), on 10 October, indicated that Egyptian core inflation surged by 1.7% in September, compared to 0.14% in August. (AFP File Photo)
SHARE

Egypt floated its currency on Thursday, allowing it to fall from its previous peg of EGP 8.88 to the US dollar to between EGP 13 and EGP 16. This is the final push to secure the three-year International Monetary Fund (IMF) programme within days.

In another step toward securing $12bn from the IMF, the government later announced 30-47% increases in fuel prices, adding to the shock on the street as people saw their salaries drop and costs soar in the space of a day.

To reduce the impact of these tough decisions, the government announced that the cash support for subsidy cardholders would be increased to EGP 21 instead of EGP 18 monthly.

Abou Bakr Emam, head of the research department at Prime Bank Limited, thinks that this small increase is a poor effort.

He said that this cash support the government implemented would barely cover the rise in the price of sugar, not to mention the inflation that has pushed up prices of nearly every single product.

He believes that EGP 21 for a person is not enough for much of anything. Subsidising commodities for low-income citizens must end and be replaced by cash support, which is what the government is actually doing now but in very slow steps.

Emam added that the government must revise its ways of supporting low-income citizens, by providing for those who actually need support instead of subsidising those who don’t.

According to the state’s general budget, subsidising food commodities and bread costs the government EGP 46bn—almost 69 million citizens benefit from this.

Emam believes that the number of people not deserving of subsidies is higher than the actual number of people who need support, adding that providing for those who are truly in need would save a huge amount of money.

The government must increase the minimum wage for both the public and private sectors, Emam said.

He explained that the minimum wage of EGP 1,200 is barely enough to live on, even if citizens choose the cheapest forms of transportation and food.

The minimum wage must be no less than EGP 2,000 for any employee, Emam said. He added that the lowest wage for a good standard of living is EGP 3,000 per person.

While he realises that this is a hard thing to achieve, he emphasised that the government must hold talks with the private sector to reach a fair wage.

You Might Also Like

AAAM explores automotive investment opportunities in Egypt’s East Port Said zone

Suez Canal Bank signs protocol with Chinese TEDA to support investment in SCZone

Egypt, GIZ sign agreement of €8m to support e-government, innovation in management

Egypt hosts InnoXera Summit on education in artificial intelligenceage

Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman

TAGGED: cash, egyptian pound, float, IMF, International Monetary Fund, Subsidy, US dollar
Share this Article
Facebook Twitter Email Print
Previous Article Long-awaited pound flotation ends market’s long-standing state of suffocation: bank exchange market officials
Next Article NBE, Banque Misr raise limits on card usage abroad
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

AAAM explores automotive investment opportunities in Egypt's East Port Said zone
AAAM explores automotive investment opportunities in Egypt’s East Port Said zone
Business
FM Shoukry attends inauguration ceremony of Turkish President
FM Shoukry attends inauguration ceremony of Turkish President
Politics Egypt World
1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting
1 Egyptian security personnel, 3 Israeli soldiers were killed in border shooting 
Politics Egypt
India train crash kills at least 207, injures hundreds 
India train crash kills at least 207, injures hundreds 
Politics Breaking News World
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?