Fight inflation with targeted subsidies
Updated: 2008-01-05 10:09
As the above-mentioned cases show, if just a portion of the astronomical subsidies given to State oil giants were given to farmers, they would have a much better chance of withstanding inflation.
But if they are left alone to shoulder all the price hikes, it is more than likely that farmers will fall further behind despite all the government efforts to narrow the urban-rural income gap.
Inflation expectations remain high this year. It is necessary for the government to do what is necessary to prevent serious price increases.
To help farmers withstand the impact of inflation, policymakers should come up with targeted subsidies.
After all, the government already has the wherewithal to lift some of the extra burden farmers must bear because the national coffers have swelled rapidly in recent years.
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