IMF urges countries to support vulnerable, avoid blanket subsidies as food, fuel prices soar

6/8/2022 2:45:00 AM

The IMF said governments fighting soaring food and fuel prices should target aid to vulnerable citizens rather than issue across-the-board aid that risked adding to strains on public finances.

The IMF said governments fighting soaring food and fuel prices should target aid to vulnerable citizens rather than issue across-the-board aid that risked adding to strains on public finances.

The IMF said on Tuesday governments fighting soaring food and fuel prices should target aid to vulnerable citizens rather than issue across-the-board aid that risked adding to strains on public finances.

Russia's invasion of Ukraine has led to sharp spikes in food and fuel prices, compounding global economic woes, especially for developing economies that have been struggling more than richer ones to recover from the COVID-19 pandemic."Policymakers should allow high global prices to pass through to the domestic economy while protecting vulnerable households affected by the increases," the IMF blog said.

"That's ultimately less costly than keeping prices artificially low for all irrespective of their ability to pay."The IMF often makes removing subsidies a condition of giving aid.Pakistan on June 2 slashed fuel subsidies for the second time in a week to secure a bailout from the IMF. Tunisia said on Tuesday it would start cutting energy and food subsidies next year alongside  financial transfers to poor families, as it seeks a $4 billion IMF loan.

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But we don't have proper data on who is deserving of aid no? It's mostly used for political patronage. That's why DSWD should be headed with someone more competent than Tulfo.