Economic experts from the Energy, Technology and Vocational Bureau (BTTV) expressed views regarding the need to reduce subsidies gradually in order to achieve better fiscal sustainability and improve the country’s economic structure.
According to the expert, subsidies have long been a burden on government budgets, and a gradual reduction in subsidies could help reduce the fiscal pressures currently facing the country. “A gradual reduction in subsidies is a necessary step to ensure the efficiency of government spending and strengthen the country’s fiscal position in the long term,” said the economic expert.
In addition, reducing subsidies is also considered a necessary step to overhaul the country’s economic structure. By reducing dependence on subsidies, the government can encourage other economic sectors to develop and become more competitive. This can create new opportunities for sustainable and inclusive economic growth.
While reducing subsidies may trigger initial discomfort for some people, economic experts emphasize the importance of effective communication from the government to explain the rationale behind the policy and convey the long-term benefits it can bring.
“Clear and transparent communication from the government about subsidy reduction policies is very important to gain public support and manage expectations well,” added the economic expert.
Apart from that, economic experts also emphasize the need for compensation or replacement measures for vulnerable groups affected by subsidy reductions. This aims to ensure that the negative impacts of the policy can be minimized, while the long-term benefits can still be achieved.
Thus, the views of BTTV economic experts highlight the importance of gradually reducing subsidies as part of efforts to achieve fiscal sustainability and improve the country’s economic structure. This step is considered a necessary step to ensure sustainable and inclusive economic growth in the long term.
