Government Subsidies: Concepts, International Trends, and Reform Options

By Gerd Schwartz, Réjane Hugounenq, Benedict J. Clements

September 1, 1995

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Gerd Schwartz, Réjane Hugounenq, and Benedict J. Clements Government Subsidies: Concepts, International Trends, and Reform Options, (USA: International Monetary Fund, 1995) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper addresses the problems of defining and measuring government subsidies, examines why and how government subsidies are used as a fiscal policy tool, assesses their economic effects, appraises international empirical evidence on government subsidies, and offers options for their reform. Recent international trends in government subsidy expenditure are analyzed for the 16-year period from 1975 to 1990, using general government subsidy data for 60 countries from the System of National Accounts (SNA) and central government expenditure on subsidies and other current transfers for 68 countries from Government Finance Statistics (GFS). The paper reviews major policy options for subsidy reform, focusing on ways to improve the cost-effectiveness of subsidy programs.

Subject: Budget planning and preparation, Economic and financial statistics, Expenditure, Government finance statistics, Government subsidies, National accounts, Public financial management (PFM)

Keywords: Africa, Budget planning and preparation, Cash subsidy, Consumer subsidy equivalent, East Africa, Eastern Europe, GDP ratio, Government finance statistics, Government subsidies, Government subsidy, Middle East, North Africa, SNA subsidy data, Subsidy expenditure, Subsidy practice, Subsidy program, WP

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1995/091
Stock No:

WPIEA0911995
ISBN:

9781451851489
ISSN:

1018-5941

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