IMF Favours Cash Over Subsidies

WashingtonConsumer subsidies cost 3-6 times more than targeted cash, the IMF found.

Food and energy take a larger share of poor households’ budgets, so price shocks hit them first.

In Europe’s 2022-2023 energy crisis, less than 20 cents of each euro spent suppressing prices reached the poorest fifth, the Fund said.

The Fund allows broader measures in acute food insecurity or when governments cannot identify and reach eligible households.

It says any aid should be temporary, with clear deadlines for ending it.

Sources: Premium Times Nigeria