The conditional cash subsidies system and the equality of income distribution

Document Type : Original Article

Author

Public Finance department General economy Faculty of Commerce Alexandria University Alexandria Egypt

Abstract

The study aims at determining whether the conditional cash Transfer system could be an effective way to redistributing income to the poor society strata. Hence, the forms of subsidy applied in many countries in different political, social and economic systems were reviewed, with reference to the historical development of subsidy policy in Egypt since 1940s up till now. In addition, the study helped in assessing the efficiency of the current subsidy policy that is mainly based on commodity subsidies. Which the results had showed that it failed to reduce the inequality in income distribution. Thereby, there is a necessity to review this policy as well as proposing a policy that combines between the advantages of commodity subsidies, and avoids the disadvantages of cash subsidy together with encouraging the poor strata to demand education and health care services to encourage them to develop their skills and human capabilities and help them to exit the cycle of poverty.

Keywords