Shoestring budgets

Although the government revealed plans to raise salaries, this does not help with the hike in prices during Ramadan. Mona El-Fiqi counts pennies

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The government announced that it is planning to raise the salaries of public sector employees by 70 to 100 per cent during the next six years. But many feel that the limited increase in salaries will not meet continually rising prices, especially during the holy month of Ramadan which has become an extra financial burden for fasting families.

The People's Assembly is expected to discuss a draft law regulating the current system of salaries for civil servants during the coming parliamentary session. The draft law includes the stipulation that the salary of an employee will be raised according to his performance at work.

While the government insists that raising incomes tops President Hosni Mubarak's campaign promises, as does elevating living standards and improving the lot of low-income families, many complain that their income does not cover their needs. According to figures issued by the Central Auditing Agency, the monthly income of three per cent of Egyptian families is less than LE250, while the income of 20 per cent of families is less than LE500. Moreover, 48 per cent of families are paid between LE500 to LE1,000 per month; while 29 per cent of families receive more than LE1,000 every month.

Families with a monthly income of less than LE1,000 protest that their needs always exceed their salaries. This is especially pertinent during Ramadan since most families shop and cook foods which are traditional Iftar mainstays. These include yameesh (nuts and dried fruits), qamar al-din (apricot drink) and sticky Ramadan desserts konafa and qatayef. Moreover, in Ramadan the household budget inflates to accommodate additional amounts of meat and poultry, as well as extra Iftar guests of family and friends.

"My family's expenses in Ramadan exceed any other month, but my salary is the same so I borrow money to cover our needs in Ramadan," revealed Ismail Mohamed, a civil servant with a salary of LE700. "I wish I could invite my relatives for Iftar, but I wouldn't be able to afford it because it would eat up all my salary."

Families pay the highest prices for food commodities during the month of fasting, particularly meat and chicken. After bird flu damaged the Egyptian poultry industry last February, the price of chicken more than doubled from LE5 to LE11 per kilo. This is considered an unreasonably high price for low income families. "I used to buy chicken for my children since meat was too expensive," complained Salwa Ahmed, a housewife and a mother of three. "Now we go without them altogether because my budget does not allow for the price of chicken either."

Moreover, the low supply of poultry raised the demand on meat, which in turn hiked the price of meat from LE30 to LE38 per kilo.

Ramadan expenses are further compounded this year because the holy month began only one week after the new school year started. Back to school season is another huge financial burden for most families, because it requires extra expenses for school fees, stationery and uniforms. "I did not buy any thing extra for Ramadan this year because I spent a lot of money on school fees," disclosed Hoda Ali, mother of two.

While some families prioritised school needs over Ramadan feasting, others preferred to dip into their savings to cover both expenses. "I save some money every month throughout the year for occasions like Ramadan and Eid [Lesser Bairam]," said a prudent housewife, who preferred to remain anonymous.