Enhancing the Efficiency of Government Subsidies by Moving from Universalism to Targetingan

Abstract

This study aims to highlight the necessity of reforming government subsidies by transitioning from generalized to targeted subsidies to enhance spending efficiency and reduce the subsidy burden on the public budget while protecting the most vulnerable groups. The study references the Egyptian experience during the period (2006-2022), examining the reasons behind these reforms and key policies implemented, such as energy price liberalization and the shift to direct cash transfers, as well as the impact of these policies on financial and social stability. The study concludes that gradual planning, social safety measures, and transparency are essential factors for successful reforms, with recommendations for adopting a similar approach in other countries, like Algeria, to improve the efficiency and sustainability of subsidy policies.