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Economy

Walking the Tightrope of Fiscal Reform

Withdrawal of the fuel subsidy is too fraught a process to be left to donor diktats

It is always a sweet recipe for any government, political or military, to offer subsidised commodities to the public as it saves abuses and scorn. However, the somewhat smooth sailing thus achieved is more of a self-deception.

Given the volume of population of a country, the volume of the commodity used; its demand nature; the inelastic demand nature in case of an essential item; are all the deciding factors for the economic managers to consider before taking the plunge.

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