Some governments argue that fuel subsidies
are essential for the poor.
In spite of protests, a general understanding of the need to remove subsidies
exists, especially since Egypt took the lead in removing subsidies
a short while ago.
Iraq and Egypt's spending on energy subsidies
reached 11 per cent of GDP, while it was three per cent in Tunisia.
He pointed out that this decrease in export subsidies
within the budget indicates that "the export is not in the government's priorities".
However the cost of subsidies
has ballooned in recent years.
Coal receives $3,000,000,000 in direct consumption subsidies
in these countries, but another $131,000,000,000 goes to public underpricing of electricity, much of which is generated from burning coal.
I suggest that those receiving subsidies
for these ghastly monstrosities should receive no other subsidy at all.
1) Approximately a century later, in 1890, Congress adopted Hamilton's idea by enacting the first countervailing duty legislation in the world (2) to offset subsidies
conferred by several continental European countries on the exportation of beet sugar.
Residents in Egypt, Jordan, Lebanon, and Tunisia would prefer seeing cuts to certain fuel and tobacco subsidies
rather than food subsidies
if their governments could no longer afford to fund all of the subsidies
they currently do.
The IMF study takes sharp aim at subsidies
for gasoline, electricity and other traditional energy sources.
The government pledged to get rid of all agricultural subsidies
in return for $500 million in soft loans at the Paris I Donors' Conference in 1998, but only the beet subsidy was revoked.
A recently released report by the Congressional Budget Office (CBO) found that in 2011 the federal government spent $16 billion of our tax dollars in subsidies
for the development of renewable energy and increased energy efficiency, and only $2.