Fiscal Strategies for Resilient Economies: The Central Role of Subsidy Reform

Emerging market and developing economies (EMDEs) spend about 6.9% of GDP on subsidies, more than their combined direct expenditure on health and education. Yet, a large share of subsidy expenditures lack oversight and often prove to be ineffective, inefficient, or inequitable. Even modest subsidy reforms could generate savings of up to 1.9% of GDP in high-subsidy countries — resources that could be used for productive spending to support growth and jobs. 

With EMDEs facing decelerating growth and increasing fiscal pressures and in the context of compound shocks and elevated policy uncertainty, the need to rethink subsidy expenditures has never been more urgent.  

The event will explore how countries can design and implement well-designed subsidy reforms. The objective is not necessarily to cut support, but to ensure new and existing interventions deliver on their objectives, and do so in a manner that is efficient, equitable, and time bound. 

The event will feature a presentation of our recently launched report, Hooked on Subsidies: The Case for Reform, followed by a panel discussion bringing together World Bank Regional Practice Directors and government officials.

Further information, including registration details, is available on the official event page.