Analysis of the structure of subsidy، grants and aids and social benefits in Egypt With reference to the effectiveness of the food subsidy program.

Document Type : Original Article

Authors

1 Lecturer in Public Finance department faculty of commerce Alexandria University Alexandria Egypt

2 Public Finance department Faculty of Commerce Alexandria University Egyptian

Abstract

The programs of subsidy، grants and aids and social benefits are considered as a one of the mechanisms which expressing the economic and social role of the state in society to support producers and some classes of the household sector, especially the low-income classes, as they represent a direct or indirect addition to the real income of these groups and entities. And since the allocations  of  those expenditure represent more than 28% of the total public spending, which made them one of the main causes of the deficit  of public budget, as they count for more than a quarter of public expenditures. Hence, any attempt to reduce that deficit should be reconsidered at those programs. So, this paper examines the analysis of the structure of subsidy, grants and aids and social benefits during the period 06/2007-19/2020 where the production sector share from the total  subsidy, grants and aids and social benefits decreased from 38.1% in 06/2007 to 19.3% in 19/2020 while The household sector share increased from 61.9% in 06/2007 to 91.7% in 19/2020, as well as evaluating the effectiveness of the food subsidy and export promotion programs, as the mistakes of the previous food support program were overcome, but this was at the expense of the quantity of subsidized goods. Policymakers should follow the results and recommendations of this study in order to raise the efficiency of these programs in the future.

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