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Ministry allocates EGP 732.6 Billion for social protection

Businessmen Team news 29 March 2025 02:23 PM
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Ministry allocates EGP 732.6 Billion for social protection

Ahmed Kouchouk, Minister of Finance, stated that the 2025/2026 draft budget, approved by the Cabinet and submitted to Parliament, witnesses great interest in enhancing spending on alleviating the burdens on low-income citizens and the most needy social segments, by adopting effective initiatives and programs characterized by efficient targeting, within the framework of an integrated and coherent vision to improve the standard of living, meet the basic needs of citizens, and facilitate decent livelihoods.

He explained that EGP 732.6 billion has been allocated in the new budget for more targeted social protection for those eligible for support.

Kouchouk announced that the government, headed by Dr. Moustafa Madbouly, will increase allocations for subsidized food commodities and bread during the next fiscal year to EGP 160 billion. The government is also increasing the financial allocations for the social security pension (Takaful and Karama) by 35% over last year's budget, reaching EGP 54 billion in the new fiscal year. Additionally, monthly cash support for Takaful and Karama beneficiaries will increase by 25% starting April 2025.

The Minister clarified that EGP 75 billion has been allocated in the draft budget for the new fiscal year 2025/2026 to support electricity, as part of the government's directives to secure the energy sector, 75 billion pounds to support petroleum products, and 3.5 billion pounds to support the delivery of natural gas to homes. These allocations are part of the government's efforts to secure the energy sector and expand access to urban services, contributing to development across governorates.

Kouchouk pointed out that the new draft budget allocates EGP 5.2 billion for railway support, EGP 1.8 billion for student train and metro subscriptions, and EGP 2.5 billion for passenger transport in Cairo and Alexandria.

The Cabinet, chaired by Dr. Moustafa Madbouly, approved the draft budget for the new fiscal year 2025/2026 and decided to submit it to the House of Representatives. The budget includes revenues estimated at EGP 3.1 trillion, with an annual growth rate of 19%, and expenditures estimated at EGP 4.6 trillion, an increase of 18%. The budget also aims to achieve a primary surplus of EGP 795 billion, representing 4% of GDP, and reduce the debt of the general budget agencies to 8.9%.