Nazif announces continued government subsidies
Egypt, Economics, 4/2/2005

There is no tendency in Egypt to end government subsidies on commodities and services, Prime Minister Ahmed Nazif said yesterday.

Subsidy in Egypt is a necessity, at the economic and social levels, to support the limited-income people who cannot afford daily living expenses and economic reform programs.

The government, however, will establish in the coming stage mechanisms needed to help deliver subsidies to those who are really in need of it, he added.

"Subsidies have been misused," said Cabinet spokesman Magdi Radi.

He added that black markets emerged as an indirect result of abusing subsidies.

An ad-hoc committee, comprising 14 ministers, was formed to draw up an integrated vision of the social dimension while addressing subsidies, Radi said.

This committee will be able to identify the social categories that really need subsidies, he added.

A comprehensive development should also consider the social dimension, together with the political and economic ones, he reiterated.

Previous Stories:
  Mubarak to review government's program on improving basic commodities subsidy   (8/25/2004)
  Government is determined to control markets to break monopoly   (3/14/2003)
  Economic reform enters second stage; subsidies replacement being studied   (5/30/2002)
  Government unveils plans for 2002   (1/1/2002)
  Government's Policy Statement to the People's Assembly   (1/22/2001)

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