With the current worldwide inflation levels, governments around the region are giving more attention and time to the issue of subsidies, a form of financial assistance destined to either individuals or the economic sector. There are two different approaches to subsidies, which can be defined from either a supply or a demand perspective. Ultimately, subventions work by either contributing directly to people’s income or by financing industry sectors. “Subsidies generally result in a transfer of wealth from one group to another, and mainly targeting low income households,” said Marwan Mkhael, head of research at Lebanese BLOM Bank. Direct subsidies are based on the transfer of a cash amount to individuals who are either unemployed or belonging to a lower income population category. According to Mkhael, “This type of subsidy is one of the most efficient and the least practiced in Lebanon, as it requires specific data in order to identify
