Japan and other economies should limit fuel subsidies to those most in need, the Asian Development Bank’s chief economist said, as prolonged Middle East tensions strain public finances.
“Our advice to all countries is, if possible, to target subsidies to vulnerable groups rather than apply across the board,” Albert Park, the bank’s chief economist said in an interview on the sidelines of the ADB’s annual meeting in Samarkand, Uzbekistan. Governments should adjust their approach “as soon as they can” to preserve resources, he said.
Park’s remarks come as Japan faces mounting fiscal pressure, with bond yields rising amid concerns over increased spending under Prime Minister Sanae Takaichi.
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