CAIRO — Many Egyptians, especially the poor, are concerned by the government’s apparent intention to replace food ration cards with cash subsidies. The Council of Ministers has said it is considering the change, but has yet to unveil the details of its discussions.
In a Jan.14 interview on DMC News, Egyptian Minister of Supply and Internal Trade Ali Moselhi expressed his ministry's preference for the cash payments program. He said cash subsidies aim to increase the system's efficiency and will not reduce the value of subsidies in any way.
The International Monetary Fund (IMF) Executive Board had said back in December 2017, “Making further progress on moving away from product subsidies to better‑targeted cash transfers would strengthen the social safety net." The statement came after the IMF completed its second review of Egypt’s economic reform program under a $12 billion IMF loan.
The Center for Political and Strategic Studies affiliated with the Egyptian Patriotic Movement party released a study Feb. 3 listing the advantages of conditional cash subsidies compared with in-kind subsidies. The party’s deputy leader, Osama al-Shahed, told Al-Monitor the party will submit the study to the Council of Ministers and parliament's Economic Committee. The Council of Ministers will discuss the study before any decision is made.
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