Why India's subsidies are inflationary

On January 1, 2014, Malaysia initiated measures to dismantle legacy non-merit subsidies because they are no longer sustainable. These energy and food subsidies, put in place a few decades ago, are being cut to reduce the country's public debt, which is around 53 per cent of gross domestic product (GDP). Prime Minister Najib Razak said the country's "commitment to development expenditure has grown and we have to manage our fiscal position to ensure the stability of our economy".

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