Direct state subsidies: what may change in 2022

Addressed on numerous occasions by the Head of State and the government, the question of the revision of direct State subsidies on various products and services, including food products, is becoming clearer. This review should be launched early next year.

If the revision of the policy of direct state subsidies has been discussed for a long time, but never materialized, this time everything could change. This question will undoubtedly be initiated within the framework of the finance law for the financial year of next year, namely the LF 2022.

Indeed, the preliminary draft of the finance law (APLF 2022) provides, in particular in article 187, for the targeting of households in need of State subsidies. Thus, it was clearly stipulated “the introduction of a new provision of the finance law for the establishment of a targeting system for State subsidies, for the benefit of low and middle income households”.

This intervenes, according to the same source, with the objective of “moving from a system of generalized subsidies to a system of subsidies directed in favor of needy households and, consequently, to guarantee social equity”.

A national monetary compensation scheme for the benefit of the needy

To do this, “a national monetary compensation mechanism for the benefit of eligible households” will therefore be put in place. This same system will be implemented, “following the review and adjustment of the prices of the supported products”.

It will be materialized, according to what the government is proposing in Aplf 2022, “through a direct cash transfer program for the benefit of eligible households”. However, the targeting of needy households eligible for State support is conditioned by a “revision and adjustment of the prices of the supported products”.

In other words, direct state subsidies on widely consumed products, bearing the image of sachet milk, semolina, electricity, etc., will be reduced. Nonetheless, the Aplf provides for “a direct monetary transfer program for the benefit of eligible households”.

Thus, and according to the terms of the 2022 finance bill, once adopted by the government and the two chambers of parliament, low-income households will be compensated by a targeted financial contribution, in the event of the partial or total lifting of subsidies. .

What are the transfer modalities and eligibility criteria?

In addition, it should be noted that the preliminary draft of the finance law in anticipation of the exercise of next year, has not yet disclosed everything. In fact, the terms and criteria for the eligibility of beneficiaries or the exhaustive and final list of the products concerned have not yet been defined.

However, the document already refers to flour, therefore to bread, semolina, sachet milk, oil, gas and electricity. In this regard, the text specifies that it is first necessary to clearly define “the methods of application of this article”.

Pending the implementation of article 187 of the Aplf, in particular the definition of the subsidized products concerned, the categories of households eligible for compensation and the terms of monetary transfer, the government seems more than motivated to put an end to it. the policy of direct subsidies.

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