Egypt ‘to focus on balance’ as prices strain subsidy programme

Egypt’s Prime Minister Mostafa Madbouly said yesterday that his government will focus on “achieving balance” between providing subsidies and maintaining a sound budget amid soaring commodity prices.

Madbouly urged citizens to realise the scale of the issue, adding that Egypt is no longer isolated from global inflationary pressures.

“There’s a specific band for subsidies in the state budget and today prices are increasing. So, as a country, should I keep bearing the responsibility for these prices? Of course not. There must be a level of flexibility when dealing with this issue so that we can maintain balance,” Madbouly said in a televised news conference marking the cabinet’s first meeting in Egypt’s new capital.

Madbouly’s comments come a day after President Abdel Fattah Al Sisi announced that new subsidy cards will cover no more than two people, and a few months after Sisi said it was time to increase the price of subsidized bread for the first time since 1977.