The Egyptian government intends to reduce the number of people covered by its food subsidy card system to between 30 million and 40 million during the current fiscal year, as a first step towards moving to a cash subsidy system, a member of the ministerial committee overseeing the overhaul has told Al Manassa.
The committee was established this year to restructure Egypt's subsidy system.
This claim, however, was denied by Assistant Supply Minister for Digital Services Mohamed Sheta. He told Al Manassa the ministry does not work toward a numerical target but instead applies eligibility criteria and social justice standards.
Currently, the subsidy system covers 21 million families amounting to 67 million people, Finance Minister Ahmed Kouchouk told parliament.
The Supply Ministry began strictly enforcing food subsidy eligibility criteria at the start of last month, sources familiar with the subsidy database previously told Al Manassa. At the same time, some citizens received notices on their bread ration receipts informing them that their subsidy cards had been suspended, sparking debate on social media.
The committee member, who requested anonymity because of the sensitivity of the information, told Al Manassa that the government has already begun implementing the new eligibility criteria ahead of reducing the number of beneficiaries before launching the cash subsidy system.
The source said cash subsidies are the proper form of support “given the loopholes and problems in the in-kind subsidy system that allow part of the subsidies to reach people who do not deserve them.” He added that some grocery stores collect subsidy cards from citizens in exchange for cash payments.
The new system is intended to ensure eligible recipients receive the full value of their subsidies while giving them the freedom to choose the goods or services they need. Within a year of introducing cash subsidies, the source added, the government plans to allow beneficiaries to use the subsidy value to pay for other expenses, such as electricity and gas bills, through a mechanism similar to bank cards or electronic wallets.
Sheta said updating the food subsidy card database is a routine, ongoing process aimed at removing ineligible recipients and adding newly eligible ones as their economic circumstances change, similar to other support programs such as Takaful and Karama.
He added that food subsidies “are not a permanent or inherited right, but are tied to a citizen’s eligibility,” explaining that “if a citizen’s economic conditions improve and they become financially capable, it is only natural for them to leave the system so the support can go to those who need it more.”
Asked about the number of people removed from the system, he said no figures can be announced yet because the database review is still underway and the appeals process remains open. Some people who were removed may be reinstated after their applications are reviewed.
He said the latest officially announced figure was about 850,000 subsidy cards, adding that the final number of beneficiaries and those removed will not be announced until the database review is complete and the results are formally approved by the supply minister.
The eligibility criteria for removing citizens from the subsidy system triggered widespread objections in 2019, prompting the government, following presidential directives, to reinstate 1.8 million people to the food subsidy card system while reopening the appeals process to review excluded cases.
