Abstract
- The fuel prices increased by the government in 2022 to reduce the burden on the national budget can lead to an increase in the poverty rate but only a slight reduction in the Gini ratio.
- About 70% of the potential increase in poverty is mitigated by social assistance programs. In addition, social assistance potentially reduces expenditure inequality.
- Overall, reallocation of fuel subsidy into social assistance programs is progressive, as it benefits the poor relatively more than the rich.
Editor
Research Area
National
Keywords
fuel price increase
inflation
demand system
poverty
inequality
Indonesia
Download (1.07 MB)