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Bread subsidies to hit record high in 2012/13: Exclusive figures Egypt will spend LE16 billion subsidising bread - about a quarter of a pound per loaf - according to a detailed breakdown of the new budget obtained by Ahram Online
Egypt's government will raise bread subsidies to a record high in the 2012/13 financial year, figures for the new budget show. The amount subsidised per loaf of bread will climb to 24.08 piasters (around a quarter of LE1). This is up from 19.8 piaster per loaf in 2011 and even higher than the 23.3 piaster figure seen in 2007/2008. A loaf is eventually sold at 5 piasters to the end consumer. Ahram Online has obtained as-yet uncirculated details of Egypt's budget for the 2012/13 financial year which starts in July. Over the next few days Ahram Online will publish excerpts which show large or surprising variations on last year's figures. The document shows that total bread subsidies are expected to rise to LE16.2 billion, a hearty 49.5 per cent increase over the 2011/12 financial year. Total consumption of wheat is also seen to grow to 9 million tonnes in 2012/13, up from 7.3 million. Local wheat producers will receive LE7.46 billion for their 3 million tonnes crop, 80 per cent more than the LE4.1 billion paid in the current financial year. Bread subsidies make up 60 per cent of total food subsidies, the latter of which are valued at LE26.6 billion. Food subsidies, in turn, make up 18 per cent of the total subsidies sum of LE145.8 billion ($24.155bn). Subsidies and Grants (LE millions) Year 2012-13 2011-12 Growth Subsidies Food 26,600 18,884 41% Petrol 70,000 95,535 -27% Electricity 5,000 5,000 0% Export support 3,100 2,500 24% Farmers 573 333 72% Transportation 1,224 851 44% Others 6,489 7,371 -12% Total Subsidies 112,986 130,474 -13% Grants Grants 6,013 6,375 -6% Supporting pension funds 20,700 10,700 93% Social solidarity pensions 2,534 2,434 4% Others 674 632 7% Total Grants 29,921 20,141 49% Reserves 2,930 3,841 -24% Total Subsidies and Grants 145,837 154,456 -6% http://english.ahram.org.eg/News/44079.aspx
