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How to eliminate subsidies and consolidate public budgets

Author

Listed:
  • Gisela Färber
  • Klaus-Dieter Diller

Abstract

Politicians and business leaders in Germany all favour a reduction of subsidies - also for the consolidation of public budgets. Under discussion are a broad-based examination of individual cases or a cut of all subsidies and tax deductions by a specified percentage figure. For Prof. Gisela Färber, Deutsche Hochschule für Verwaltungswissenschaften Speyer, reality tells us "that these 'sudden' efforts seldom have much effect, regardless of whether an across-the-board or an individual approach is used for the cuts", so that both methods will fail in her opinion. Prof. Färber proposes seven elements that should be incorporated into a promising subsidy reduction procedure. Also for Prof. Klaus-Dieter Diller, University of Koblenz-Landau, the proposed methods for subsidy reductions have little chance of success.

Suggested Citation

  • Gisela Färber & Klaus-Dieter Diller, 2003. "How to eliminate subsidies and consolidate public budgets," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 56(12), pages 3-9, June.
    • Handle: RePEc:ces:ifosdt:v:56:y:2003:i:12:p:3-9
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    More about this item

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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