Ministry cut subsidies by 14.35% in early 2024, saving KD 19.1 million

• The subsidies disbursed on a monthly basis in April grew slightly by 0.2 percent, amounting to about 52,000 dinars. This marked an increase from 25.055 million in March to 25.107 million in April.

• The total subsidies disbursed for basic materials ‘combined’ decreased by 14.3 million dinars, or 28.8 percent, over the four months of 2024, falling from 49.6 million in the same period of 2023 to 35.3 million in 2024.

The subsidies disbursed by the supply department in the Ministry of Trade and Industry dropped by 14.35% over four months in 2024 compared to the same period last year, decreasing from 133.2 million to 114.1 million dinars, a decline of about 19.1 million dinars.

Official data revealed that the support disbursed on a monthly basis in April grew slightly by 0.2 percent, amounting to about 52,000 dinars. This marked an increase from 25.055 million in March to 25.107 million in April. However, when compared on an annual basis, the support disbursed in April saw a decrease of 40.7 percent, amounting to about 17.23 million dinars, down from 42.346 million in March 2023.

Additionally, the number of cumulative ration cards increased by three percent in April compared to the previous year, with an increase of 7.8 thousand cards from 257.3 thousand in April 2023 to 265.14 thousand cumulative cards in April of the current year. The number of individuals benefiting from the cumulative provision also dropped on an annual basis by 1.5 percent, by about 34,000 beneficiaries, from 2.24 million beneficiaries in April 2023 to 2.205 million last April.

Distribution of subsidies

The Ministry of Commerce and Industry’s supply department divides its subsidies into three main categories: basic materials, children’s milk and nutrients, and construction materials.

The total subsidies disbursed for basic materials ‘combined’ decreased by 14.3 million dinars, or 28.8 percent, over the four months of 2024, falling from 49.6 million in the same period of 2023 to 35.3 million in 2024. On a monthly basis, it also decreased by 0.35 percent, or about 28,000, from 7.961 million in March to 7.933 million in April.

The subsidies spent on milk and child nutrition decreased by about 598,000 dinars, or 11.3 percent, from 5.28 million in the four months of 2023 to 4.68 million in the same period of 2024. This decrease is accompanied by a monthly reduction of 13 percent, or about 188,000, from 1.44 million in March to 1.251 million in April.

Similarly, the subsidies disbursed for construction materials decreased by about 4.1 million dinars, or 5.3 percent, from 78.25 million in the four months of 2023 to 74.07 million in the same period of 2024. However, there was a monthly increase of 1.7 percent, or about 268,000, from 15.65 million in March to 15.923 million in April.