Madbouly Launches EGP 40 Billion Social Protection Package Ahead of Ramadan

Cairo – February 15, 2026

Prime Minister Mostafa Madbouly announced a comprehensive social protection package exceeding EGP 40 billion, effective immediately until the end of the current fiscal year (June 30, 2026), following President Abdel Fattah El-Sisi’s directives. The move aims to alleviate living costs ahead of Ramadan.

Key measures include:

1. Direct Cash Support for 15 Million Families:
- 5 million families under “Takaful and Karama” receive an additional EGP 400 during Ramadan and Eid (total EGP 4 billion).
- 10 million low-income families on ration cards receive EGP 400 in March and April (EGP 8 billion).
- 45,000 child pensioners and rural leaders receive EGP 300 each.
- Payments are split into two installments: before Ramadan and before Eid al-Fitr.

2. EGP 9 Billion for Healthcare:
- EGP 3 billion for state-funded medical treatment for low-income individuals.
- EGP 3 billion to reduce surgical waiting lists for critical cases.
- EGP 3.3 billion to accelerate comprehensive health insurance in Minya governorate, covering non-affording citizens.

3. EGP 4 Billion for Farmers:
- Covers the increased wheat procurement price from EGP 2,200 to EGP 2,350 per ardeb for the 2026 season, disbursed during harvest (late April–June).

4. EGP 15 Billion for the 'Decent Life' Initiative:
- Additional funds to complete the first phase of rural development by June 30, 2026, targeting infrastructure and essential services in 1,000 villages.

5. Early Salary Disbursement and Wage Increases:
- February salaries to be paid early, March salaries before Ramadan.
- The 2026/2027 budget will include an exceptional wage increase, prioritizing teachers and healthcare workers.

6. Tax and Price Stability Reforms:
- Commitment to prevent price hikes due to the package; intensive market monitoring.
- Planned reforms: simplifying tax systems, reviewing property taxes, and adjusting customs tariffs to support industry and curb smuggling.

Economic Analysis:
- The package equals about 0.3% of estimated GDP - a calculated fiscal expansion aligned with Egypt’s primary surplus targets.
- If funded through revenue improvements or reallocation, deficit impact may be limited; borrowing could increase debt servicing costs.
- Targeted cash support is expected to have a limited inflationary effect, especially with strict market controls.
- The package marks a shift from strict austerity toward a balance of fiscal discipline and social support, particularly ahead of Ramadan.

Distribution Table:
- Cash support for 10 million families: EGP 8 billion
- Cash support for 5 million “Takaful and Karama” families: EGP 4 billion
- State-funded healthcare: EGP 3 billion
- Surgical waiting lists: EGP 3 billion
- Comprehensive health insurance (Minya): EGP 3.3 billion
- Wheat support: EGP 4 billion
- 'Decent Life' completion: EGP 15 billion
- Total: Over EGP 40 billion

The new package is among Egypt's largest direct financial interventions in recent years, arriving at a critical economic and social juncture. Its success depends on non-disruptive financing, price stability, and continued macroeconomic improvement. If achieved, 2026 could be a turning point from shock to gradual recovery for Egypt’s economy.