Fuel subsidy is the governmental support of the fuel industry and donations into it with the purpose to enable industrial objects pay less for fuel resources and concentrate their expenditures on the production of the required goods and services. Frankly speaking it is not reasonable to carry out fuel subsidy, because the price for oil and gas are extremely high in the modern world and the prices will be only getting higher and higher. Fuel subsidy is supposed to maintain the development of the middle and great business which supports the economics of the country and this intention is understandable. For example, in order to exist, a company has to possess finance for self development, finance for paying salaries, taxes and energy.
Fuel is one of the most expensive expenditures, so it is obvious that without subsidies many companies would not be able to cope with the taxation burden. Unfortunately, on practice fuel subsidy is carried out poorly. The businessmen who get such subsidies stop to appreciate fuel and energy resources wasting them often without any purpose. A company can purchase much of cheap fuel and burn it down in enormous quantities which affects the economics and the environment badly. In order to stop the waste and teach businessmen appreciate resources fuel subsidies have been reduced considerably in many countries of the world. Evidently, it has provoked disappointment and strikes but it is the only way out to economize natural resources and reduce financial expenditures.
Fuel subsidy is a positive idea but its purpose has been misunderstood, especially in the modern world. Students who are required to prepare good term papers on fuel subsidy will need to explain the purpose of these subsidies, the methods with the help of which the policy is carried out and what spheres are maintained due to the subsidies. Furthermore, the paper should present a well-analyzed list of the advantages and disadvantages of fuel subsidy and every point should be supported with the reliable evidence from the real cases connected with business, finance and environmental protection. The term paper should be interesting and convincing, as one should support his point of view with the true to life facts.
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