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Egypt’s spending on subsidies, annuities, and social benefits hits EGP133bn

The large number of public servants remains the main challenge facing administrative reform

Egypt‘s spending on subsidies, annuities, and social benefits soared by EGP15.2 billion or 12.8 per cent to EGP133.4bn in the first nine months of the current fiscal year (started in July 2014).

The country’s total expenditure on subsidies, annuities and social benefits now comprises 5.7 per cent of the gross domestic product, the Egyptian Ministry of Finance reveals in a report.

Egypt’s subsidies of commodities still run high at EGP94.8bn compared with EGP85.2bn, the figures released by Youm7 show.

In its April bulletin, the finance ministry indicates that spending on wages and workers’ compensations surged by 17.6 per cent in the nine-month period to EGP143.3bn, comprising 6.2 per cent of the gross domestic product.

Minister of Planning and Administrative Reform, Ashraf el-Araby, says that the large number of public servants remains the main challenge facing administrative reform.

The minister points out there are 6.36 million employees working in the public sector in the country.

He says the salaries of public employees account for 26 per cent of the 2014-2015 state’s budget, with a total of EGP208bn.
(1 EGP = 0.1310 USD).