Arab Republic of Egypt

Measuring and Analysis of the Impact of Public Expenditures on Poverty in The Arab Republic of Egypt for (2004-2022)

Bilal Raouf Salih, Kamaran Ahmed Hama

The research aims to analyze and measure the impact of public spending on poverty rates in Egypt in the short and long term (2004-2022). To achieve this objective, I using a descriptive and econometrics analytical approach, which employed the econometric approach and the ARDL model, revealed a relatively limited impact of public spending on reducing poverty rates in the short term. This is due to the inefficient allocation of resulting from rampant administrative corruption, which led to a portion of spending being diverted away from targeted groups. The results also revealed that political instability, especially in the transitional periods following 2011, contributed to reducing the impact of public spending on improving living standards, as a result of turbulent economic policies and slow growth. In the long term, it was found that persistent administrative corruption and political volatility weakened the effectiveness of government spending in achieving comprehensive and sustainable development, and poverty rates remained at relatively high levels. The study recommends reforming financial governance mechanisms, enhancing transparency and accountability, and achieving political stability to ensure that public spending is directed efficiently toward poverty reduction and social justice.