A man carries bread bought from a bakery in Cairo (Photo: Reuters)
Egypt's government will raise bread subsidies to a record high in the 2012/13 financial year, figures for the new budget show.
The amount subsidised per loaf of bread will climb to 24.08 piasters (around a quarter of LE1). This is up from 19.8 piaster per loaf in 2011 and even higher than the 23.3 piaster figure seen in 2007/2008.
A loaf is eventually sold at 5 piasters to the end consumer.
Ahram Online has obtained as-yet uncirculated details of Egypt's budget for the 2012/13 financial year which starts in July.
Over the next few days Ahram Online will publish excerpts which show large or surprising variations on last year's figures.
The document shows that total bread subsidies are expected to rise to LE16.2 billion, a hearty 49.5 per cent increase over the 2011/12 financial year.
Total consumption of wheat is also seen to grow to 9 million tonnes in 2012/13, up from 7.3 million.
Local wheat producers will receive LE7.46 billion for their 3 million tonnes crop, 80 per cent more than the LE4.1 billion paid in the current financial year.
Bread subsidies make up 60 per cent of total food subsidies, the latter of which are valued at LE26.6 billion.
Food subsidies, in turn, make up 18 per cent of the total subsidies sum of LE145.8 billion ($24.155bn).
|
Subsidies and Grants (LE millions) |
|
Year |
2012-13 |
2011-12 |
Growth |
|
Subsidies |
|
|
|
|
Food |
26,600 |
18,884 |
41% |
|
Petrol |
70,000 |
95,535 |
-27% |
|
Electricity |
5,000 |
5,000 |
0% |
|
Export support |
3,100 |
2,500 |
24% |
|
Farmers |
573 |
333 |
72% |
|
Transportation |
1,224 |
851 |
44% |
|
Others |
6,489 |
7,371 |
-12% |
|
Total Subsidies |
112,986 |
130,474 |
-13% |
|
Grants |
|
|
|
|
Grants |
6,013 |
6,375 |
-6% |
|
Supporting pension funds |
20,700 |
10,700 |
93% |
|
Social solidarity pensions |
2,534 |
2,434 |
4% |
|
Others |
674 |
632 |
7% |
|
Total Grants |
29,921 |
20,141 |
49% |
|
Reserves |
2,930 |
3,841 |
-24% |
|
Total Subsidies and Grants |
145,837 |
154,456 |
-6% |
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