International Monetary Fund is a worldwide association financed to a great extent through industrialized nations that offer reserves regularly with strict strategy conditions to countries with balance or debt of compensation troubles. A society in a severe monetary crisis, unable to repay its international bills, stances potential problems for the solidity of the global financial structure, which the IMF formed to protect. Any member nation, whether poor, rich or middle-income, can seizure to the IMF for financing if it has a balance of expenses need. That is if it cannot get sufficient funding on affordable standings in the capital markets to maintain a safe level of reserves and brand its international payments.
In case the government has invited a loan from the IMF, the recommendations to the government would make amended on food subsidies. Regarding the salaries of the officials’, it is mandatory for the officials to get paid as it is their right concerning the services they offer to the nation. If reduced, it might lead to de-motivation. Same-way, when talking about education, the government should not deduct its spending on education because it is among the most important sectors to capitalize in for the present as well as future investments.
A tax refund or tax rebate which is the payment to the person paying more tax than the amount they owe for the exporters, must not be snubbed as it will enhance the economy indirectly. If exporters have a guarantee that money they remunerated will rebate, they can be encouraged to be involved in global business.
In the occasion that the government makes cuts on the food subsidies, they don’t make any economic sense but narrow political sense. Intended to help in lowering income in families but alternatively, it creates problems of deficient calories for children hence causing obesity problems. So, such plans only unnecessarily help more recipients as well as increasing the budget of the government. Such programs can be sidelined for private charities. Likewise, it can aid the farmers to produce more hence growing its production. It will primarily affect the economy by creating further works in the agricultural sector.