Comparison between breakdowns of Egypt's budget- IMF Graph
CAIRO – 26 September 2017: Economic and fiscal reform decisions taken by the Egyptian government have positively affected social protection as energy subsidies’ allocations to a better-targeted social safety net, the International Monetary Fund (IMF) said in its Tuesday staff report review.
The government is targeting, this fiscal year, expanding its cash transfer programs and increasing semi-cash allowances for its food subsidies program, the IMF stated.
Egypt plans to increase the coverage of Takaful and Karama social programs from the current 1.5 million households to 1.7 million in FY 2017/18, the fund noted.
The IMF also praised actions taken to increase monthly allowances per ration card from LE 15 to LE 21 ($0.50 - $1.19) in 2016 and further to LE 50 in 2017 for around 69 million beneficiaries.
“Tax credits and an increased minimum personal income tax threshold will enhance tax relief at the lower income level,” the IMF said.
Cutting energy subsidies and the wage bill and introducing the VAT have contributed to allow more spending space for social spending and reaching the neediest people of the society. “The current budget includes a strong social component to ease the burden of adjustment on the poor and the vulnerable,” the IMF said.
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