Macroeconomy

David Coady, Moataz El-Said, Robert Gillingham, Kangni Kpodar, Paulo Medas, David Newhouse , International Monetary Fund (IMF) , 2006

This paper identifies the issues that need to be discussed when analyzing the fiscal and social costs of fuel subsidies. Using examples from analyses recently undertaken for five countries, it also identifies the magnitude of consumer subsidies and their fiscal implications. The results of the analysis show that—in all of these countries—energy subsidies have significant social and fiscal costs and are badly targeted.

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