Egypt to increase social security budget to EGP 529.7 billion in 2023/24 FY Plan

 Egypt’s Ministry of Planning and Economy announced the goals of the plan for the current fiscal year 23/2024 in the field of social welfare.

 H.E. Dr. Hala El-Said, Minister of Planning and Economic Development, announced that the government has approved a series of policy and program packages for the period 2023/2022 aimed at providing more social protection to middle and low-income. 

The first package was announced in 2023/22 at the start of the financial year, at a total cost of EGP 68 billion. 

 That package included an increase in appropriations for the Solidarity and Dignity (Takaful & Karama) Programme, increasing the number of beneficiaries to around 5 million families at an additional cost of EGP 5.5 billion, and continued work to secure the necessary funding for the Decent Life program. 

 The Decent Life program aims at integrated rural development, with the Treasury responsible for property tax deferral for several industries and sectors over three years, at an estimated annual cost of EGP 1.5 billion.  

 The government also announced a second set of social security packages covering the second quarter of 2023 (April-June) and 2023/24 at a total cost of EGP 190 billion.  The first part includes EGP 40 billion and the second part includes EGP 150 billion and EGP 95 billion allocated to increase the minimum wage and the Solidarity and Dignity Pension and EGP 55 billion to increase pensions.

 El-Said added that the country's desire to activate 2023/2024 in the social insurance budget proposal of 2018, the mechanisms of social welfare and protection programs showed a support of EGP 529.7 billion.

 According to the report of the Ministry of Planning and Economy, the commodity support and financial support of social services increased by 22% in the period 2023/2024 compared to 2022/2023. 

Social security allocations amount to about EGP 31.3 billion and the number of beneficiaries in 2023/2024 is estimated at more than 5 million beneficiaries.

Regarding the allocations to support food commodities, the report explained that the developments in the support values for food commodities the cash support provided to the Takaful and Karama programs, and the numbers of beneficiaries reflect the growing role that the state plays in providing social protection through the initiatives and programs it adopts (Takaful / Dignity / Mastoura / Awareness).

 

The targeted support allocated to food commodities grew by about 32% during the year 2023/2024 compared to the year 2022/21.

  The draft budget for the year 2023/2024 also aims to allocate about EGP 31 billion to the Takaful and Karama programs, compared to EGP 24.1 billion for the year 22/2023.

The report indicated a trend for the poverty rate to decline for the first time in 2019/2020 to 29.7% after it had recorded a continuous increase in previous years until it reached its highest levels (32.5%) in 2018/17.

It is targeted - with the continued effectiveness of protection and social care programs - that the rate will continue to decrease to 28.8% in the plan year 2024/23 and then to 27.9 at the end of the plan 25/2026.

It is also targeted that the extreme poverty rate in the year of the plan will decline to 4.2% and then to 4% by the end of the year 2026/25, where it reached its maximum in the year 2018/17 (6.2%).