A number of economists identified difficulties in transitioning to monetary subsidy, focusing on the pricing mechanism for bread and other products, rather than the subsidy itself.
Hassan Dahdouh, dean of the Faculty of Economics at Damascus University, stated that the issue lies in determining the real cost of products, according to the hashtag Syria. He mentioned, “The cost of a bundle of bread was 7,000 SYP, then 8,000 SYP, and recently 8,500 SYP,” questioning the pricing mechanism used by the responsible committee in the Ministry of Internal Trade and Consumer Protection.
Dahdouh highlighted that the committee’s cost calculations are illogical and include factors that shouldn’t be considered. He noted that the main problem in all Syrian economic and industrial institutions is their adherence to the basic financial system without a clear methodology for calculating costs.
Economist Yasser Meshaal added that no public institution in Syria has a cost accounting system, nor can they calculate costs for public goods, including electricity. He explained that the only institution with a costing system is the General Corporation for Cement in Lattakia, which established this system after transitioning to the private sector.
Economist Abed Fadlia shared that he was once assigned to study the General Organization for Seeds and found their price calculation method to be flawed.
The local newspaper Qasioun reported that the shift to cash support is part of an ambiguous scenario aimed at eliminating the remaining subsidies. The government has significantly reduced subsidy allocations over the past years, leading to mechanisms that have negatively impacted citizens and markets.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
