Egypt's new budget for the 2022/2023 fiscal year allocates 127.7 billion Egyptian pounds (around $4.14 billion) for food subsidies, reflecting the government's large spend on keeping basic goods affordable for the country's 105 million people.
Egypt relies heavily on imports for its food needs and fuel, making subsidies an important part of its budget. The new budget estimates Egypt will require 8.25 million tons of wheat imports in the coming year.
The budget projects oil prices of $80 per barrel of Brent crude and expects total revenues of 2.142 trillion Egyptian pounds, while forecasting a total deficit of 824.44 billion pounds, or 6.96% of gross domestic product.
The draft budget, approved by parliament, projects economic growth of 4.1% for the coming fiscal year and an average inflation rate of 16%. Interest payments on government debt are estimated to average 18.5%.
In summary, Egypt continues to allocate a sizable portion of its budget - around 127.7 billion Egyptian pounds - to food subsidies in order to keep basic goods affordable as the country relies heavily on imports. Rising import bills, high inflation and interest rates pose challenges but the government projects reasonably robust economic growth of 4.1% for the coming fiscal year. Food subsidies remain an important economic and social policy tool in Egypt.
