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An Economic Study for Possibility of Food Subsidy Rationalization in Egypt دراسة إقتصادية لأمكانية ترشيد الدعم الغذائي في مصر

Article

Last updated: 28 Dec 2024

Subjects

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Tags

Agricultural economics

Abstract

Support is considered a tool used by the state to address the imbalances that occur, whether in the production process or in the efficiency of income distribution among the classes of society. Egypt has adopted the support policy as one of the means of achieving social justice to support the poor classes since 1945. The aspects of support, which many citizens may not know about in their entirety, need to be reconsidered and restructured in a way that helps rationalize the state's public spending through the general budget while achieving sustainable development for Egyptian society.
It has been shown that the continuous increase in the value of support through the expansion of support for bread and food commodities in addition to support for petroleum products, electricity, housing, and activating exports and others, as its value rose from about 54.2 billion pounds, representing about 22.94% of public spending in the 2005 budget, amounting to about 236.28 billion pounds, to 355.99 billion pounds, representing 11.61% of total public spending in the 2023 budget, amounting to about 3066.3 billion pounds, but this did not lead to a reduction in the poverty rate, which indicates that  The current policy of distributing support is unable to achieve social justice and reach the poor, which means that other policies must be adopted to rationalize support and deliver it to those who deserve it.  Therefore, the study aims to identify the economic and social impacts of reducing food support and trying to reach a better distribution in order to maximize the return as well as reduce the wasted expenditures on food support for undeserving categories. The study relied on descriptive and quantitative statistical methods in analyzing the data for the study, through published and unpublished secondary data that can be obtained from the data of the Ministry of Finance and the State General Budget, the Cabinet, the Decision Support and Making Center, the Ministry of Supply and Internal Trade, and the bulletins of the Central Agency for Public Mobilization and Statistics. The results showed the following
1- The value of total support increased from 54.2 billion pounds, representing about 22.94% of the general budget, amounting to about 236.24 billion pounds in 2005, to 356 billion pounds, representing about 11.61% of the general budget, amounting to about 3066.3 billion pounds in 2023.
 2- By estimating the annual growth rate of each of the gross domestic product, the state general budget, and the total total support, It was found that it increased at a rate of  11.8%, 14.4%, 10.1% for each, respectively, in
While the percentage of the general budget from the GDP and the percentage of government support from the general budget decreased by a rate of 2.4%, 4.3% for each, respectively.
-3By estimating the annual growth rate for each of food support, the percentage of food support from the total support, and the percentage of support for food commodities, it was found that it increased by a rate of 16.4%, 6.3%, 6.7% for each, respectively, while the support for food commodities, bread support, and the percentage of bread support from food commodities decreased by a rate of 23.2%, 11.9%, 4.5% for each, respectively, and despite the increasing trend in the value of bread support, the relative importance to food support decreased from about 83% in 2006 to reach about 24.6% in 2020, with an average of 54.5% during the study period.
-4By studying the individual's decisions on the most important food commodities, it was found that the quantities of subsidized commodities decreased with the increase in their prices, as the quantity of oil decreased from 1.5 kg per person in 2012 to reach 0.8 kg per person in 2023, while the from 1.5 kg per person in 2012 to reach 0.8 kg per person in 2023, while the price of oil increased from 3 pounds/kg in 2012 to 37.5/kg in 2023. Likewise, the quantities of sugar in the card decreased from 2 kg/person in 2012 to reach 1 kg/person in 2023, while the price of a kilo Increased from 1.25 pounds in 2012 to reach 12.6 pounds in 2023. Likewise, the quantities of rice decreased from 2 kg/person in 2012 to reach 1 kg/person in 2023, while the price of rice increased from 1.5 pounds/kg to reach 12.7 pounds/kg in  2023, while the price of a packet of tea (50 g) increased by 0.65 EGP/kg in 2012 to reach 5 EGP/kg in 2023.
RECOMMENDATIONS
-1The need to work on rationalizing support to ensure that support reaches those who deserve it on the one hand and that the state plays its role in achieving sustainable development on the other hand.
-2The need to take Into account the impact of inflation on support decisions, especially food support for low-income classes, as the implementation of the new food supply system had a significant and statistically significant impact on support decisions.
-3Conduct a community dialogue in which Egyptian symbols participate to clarify the impact of continuing support in this way on economic development and on the state's ability and inability to continue performing its tasks in improving education and health and providing job opportunities.

DOI

10.21608/jalexu.2024.334320.1240

Keywords

الناتج المحلى, الدعم الغذائى, الموازنة العامة, دعم السلع التموينية, دعم الخبز

Authors

First Name

Karima

Last Name

Ahmed

MiddleName

Z.S.

Affiliation

Agricultural Economics Research Institute - Agricultural Research Center

Email

dr.ahmed30111@gmail.com

City

-

Orcid

-

First Name

OM Hashem

Last Name

Zaki

MiddleName

Ali

Affiliation

Agricultural Economics Research Institute - Agricultural Research Center

Email

-

City

-

Orcid

-

Volume

29

Article Issue

4

Related Issue

51243

Issue Date

2024-12-01

Receive Date

2024-11-06

Publish Date

2024-12-30

Page Start

640

Page End

652

Print ISSN

1110-5585

Online ISSN

2785-9525

Link

https://jalexu.journals.ekb.eg/article_394634.html

Detail API

https://jalexu.journals.ekb.eg/service?article_code=394634

Order

4

Type

Research papers

Type Code

1,789

Publication Type

Journal

Publication Title

Journal of the Advances in Agricultural Researches

Publication Link

https://jalexu.journals.ekb.eg/

MainTitle

An Economic Study for Possibility of Food Subsidy Rationalization in Egypt دراسة إقتصادية لأمكانية ترشيد الدعم الغذائي في مصر

Details

Type

Article

Created At

28 Dec 2024