Bread subsidies to hit record high in 2012/13: Exclusive figures
Ahram Online, Wednesday 6 Jun 2012
Egypt will spend LE16 billion subsidising bread - about a quarter of a pound per loaf - according to a detailed breakdown of the new budget obtained by Ahram Online


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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