What will cash-based subsidies look like? As we inch closer to the government scrapping in-kind subsidies and replacing them with cash subsidies, several questions linger regarding the new subsidy program — how it will work and how much will cash-based subsidies pay out?

Cash-based subsidies will range between EGP 500-1,250, a government source told Enterprise. A two-person household will receive a monthly EGP 500, three-person households will receive EGP 750, while four-person households will be getting a monthly EGP 1,250. Households with more than four members will not be eligible for any subsidies, our source told us.

Annual increases: The sums suggested will be raised annually in line with inflation levels, the source said.

It will be a gradual transition: The first year of implementation will see both in-kind and cash-based subsidies granted to households — in-kind subsidies will exclude oil and sugar.

How will the funds be distributed? Families will receive their cash subsidies through a card that can be used just like a prepaid card in retail stores.

The timeline: Prime Minister Moustafa Madbouly last week said that he hopes to see the initial phases of the implementation of cash-based subsidies at some point during the next fiscal year. The matter has already been discussed by the National Dialogue, which is now in talks with the government over how it could be implemented, he said.

Remember: Slashing subsidies and moving towards direct cash-based assistance is one of the steps the International Monetary Fund is eager for us to carry out.

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