Dr. Salah Hashem, head of the Strategic Forum for Public Policies and Development Studies”draya” praised the social package approved by the government on Wednesday, based on the political leadership’s mandate to alleviate the burden of citizens and support them in light of the current global crisis, by increasing the wages of all workers in the units of the state’s administrative apparatus( 4.6 million employees)..
Hashem explained that the financial allocations for the new exceptional social package will be provided through the provision of reserves within the state’s general budget, amounting to about 135 billion pounds, which is allocated to confront crises and shocks, noting that the new package is the second during 2022, as the first was approved in February and applied on the first of March, and amounts to Its cost is about 67 billion pounds, and it will be implemented starting next November, and it is a cost that is expected to increase to reach 100 billion pounds.
The head of the “Draya” forum also stated that the exceptional social package comes as an immediate translation of the recommendations of the economic conference, which includes the following measures:
- Raising the minimum wage from 2400 in February 2022 and then to 2700 in April 2022, and the last increase amounted to about 3000 pounds, bringing the current minimum wage.
- Increasing salaries for state employees by about 300 pounds per month for all job levels, starting from the sixth degree to the excellent degree, which is a lump-sum undiscounted value, with a total annual cost estimated at 16.4 billion pounds.
- An increase of 300 pounds for all pensioners and their beneficiaries for more than 10.5 million citizens, at a total annual cost of 32 billion pounds.
- Raising the minimum tax exemption to 30,000 pounds instead of 24,000 pounds, an increase of 25%, at an annual cost of 8 billion pounds. It means that new categories are completely exempt from income taxes, which benefits a large number of citizens, especially in light of the high rates of inflation and the current wave of high prices.
- Stimulating the private sector with a cash support package subject to not laying off or laying off workers.
- Stabilizing energy prices (fuel until the end of December 2022).
- Stabilizing electricity prices at the same level as the current prices until the end of June 2023, i.e. for an additional 6 months, at an additional cost of EGP 1.9 billion, and a total cost of EGP 3.8 billion for the current fiscal year 2022/2023.
- Continuing to support ration cards at an average of 100-300 pounds until the end of June 2023, with the total targeted cards increasing by 10.3 million, with a total of 11 million pounds. Continuing to support ration cards at an average of 100-300 pounds until the end of June 2023, with the total targeted cards increasing by 10.3 million, with a total of 11 million pounds.
- An increase in the number of beneficiaries of conditional cash support programs (Takaful and Karama) by 400,000, with the inclusion of 40 new villages within the presidential initiative, a decent life.
Hashem confirmed that these measures would contribute to achieving relative stability in the general level of prices during the current fiscal year 2022/2023, and mitigate the acceleration in the decline in the standard of living of individuals as much as possible in light of the number of beneficiaries, which amount to 10 million on average.
Hashem stressed the need to control markets, prevent monopolistic practices and price manipulation, and exploit economic conditions to carry out practices that violate the provisions of the law that would increase the burdens on citizens, explaining that among the most important challenges that the state may face is the rise in prices again globally, which may lead to doubling the obligations granted by the government. In compliance with the directives of the political leadership.
He added that the performance of the Egyptian economy has witnessed a great development recently, which has been avoided by many repercussions that the countries of the world witnessed in light of the state of uncertainty and turmoil that befell the global economy, referring to a report issued by Fitch Solutions under the title Country Risk Report. Which stated that the Egyptian industrial sector is facing a great opportunity with the decline in imports from abroad, and therefore the relative contribution of the industrial sector can be increased by providing an opportunity for the private sector and enabling it to restore growth, so that the percentage of industry will reach more than 20% during the next three years compared to a contribution rate It is estimated at only 17%.
He also expressed his expectation that global investments will witness a great movement during the meetings of the Climate Summit Cop 27 in November 2022 in Sharm El Sheikh, where the summit represents a great opportunity for the Egyptian side to enhance investment flows inside, through marketing all available investment opportunities in general and investments directed to the environmental sector and the economy Green and hydrogen production in particular.
On the “State Ownership Document”, the head of the “Draya” forum said that the Egyptian state is working on formulating the general framework governing state ownership in the economic system, and it is expected that the document will be presented in its final form at the end of the first quarter of the current 2022/2023 fiscal year, and the government aims through This document provides for the availability of economic activity at rates ranging between 60:75% for the private sector.