(AFP FILE PHOTO/KHALED DESOUKI)
The allocations of public employee wages amount to 228bn in the FY 2015/2016 budget, showing an EGP 27.3bn increase (14%) compared to the current budget, the Ministry of Finance announced on Thursday. The ministry added that spending on wages represents 26% of the total public expenditures.
The total expenditure of social safety programmes in the new budget amounted to EGP 431bn, representing approximately 49% of the total public expenditure. It marks a 12% increase compared to the current fiscal year.
The Ministry of Finance said in a statement the government will expand the direct cash subsidies programmes, to which the government has allocated EGP 11.2bn for the pensions system, a 69% increase than the current budget.
Another EGP 4.2bn has been allocated to support the health insurance and medical systems, including new programmes for those who are unable to pay for health needs, with the worth of EGP 3bn.
The Egyptian government, represented by Prime Minister Ibrahim Mehleb and Minister of Planning Ashraf El-Araby, has decided the automation of salaries of public employees will start from 30 June.
The move is considered to be a step to engage more people into the Egyptian banking system, as the service will be offered to 6.5 million public employees.
The Ministry of Finance held several meetings in early May with several banks regarding the mechanisation, most prominently the National Bank of Egypt (NBE) and the Housing and Development Bank.
