The state budget includes, annually, about EGP 332bn in annual subsidies, said President Abdel Fattah Al-Sisi during the Egyptian Family Iftar gathering on Tuesday evening.
In his speech during the gathering, Al-Sisi discussed state efforts to support citizens to help them face challenges and difficulties, explaining that the support is the difference between the actual cost of certain products and services and the price paid by citizens.
The president explained that the salaries of workers in the state reached EGP 350bn annually, and that the state takes out loans to cover those salaries, which represents a large burden on the public budget, and the interest on the debt is up to EGP 540bn. He also said that the value of pensions next year will reach EGP 200bn, expected to ride in 2023 to over EGP 300bn.
Al-Sisi called on all Egyptians, of all sects and backgrounds, to stand together to face economic challenges and difficulties experienced by the Egyptian state, saying, “all these challenges and difficulties will become easy once Egyptians can bear the conditions experienced by the Egyptian state.”
He further called on citizens to be aware of the state’s situation, which the president said he “feels personally,” as he has pledged to take responsibility and not postpone difficult decisions that are necessary for economic reforms for future generations.
These remarks came a few hours after the government raised electricity prices, to go into effect starting July, by introducing new cuts to electricity subsidies.