The Politics of Public Spending

You are advising a finance ministry trying to reduce deficits without triggering economic stagnation or social backlash. Build a rigorous analysis of how governments should review public spending, tax expenditures, and business subsidies. Compare across-the-board cuts, elimination of tax niches, temporary spending freezes, targeted support for strategic sectors, and structural reforms to the budget process. Include criteria for judging whether a subsidy creates public value, distorts competition, or simply persists because it is politically entrenched. Finish with a blueprint for making fiscal consolidation credible and fair.