Subsidy reviews and enforcement

In today's economic landscape, government subsidies play a pivotal role in bolstering industries, supporting disadvantaged communities, and driving innovation. However, the effective utilization of subsidies hinges not only on their distribution but also on robust reviews and enforcement mechanisms. Subsidy reviews serve as a vital checkpoint, ensuring that taxpayer funds are allocated efficiently and transparently, while enforcement guarantees that subsidies are utilized for their intended purposes, safeguarding against misuse, and fostering accountability.

An efficient subsidy review system forms the backbone of an effective and transparent government subsidy program. It ensures that the distribution of government subsidies aligns with the intended policy objectives and the desired economic outcomes are realized. Coupled with robust enforcement mechanisms, it aids in curbing the risk of fraudulent claims, spurious beneficiaries, and the misuse of subsidies. It amplifies the legitimacy of the government's endeavors and assures taxpayers that their contributions serve the best interests of the economy and society.”

In this position paper, KPMG provides insights into how governments can better safeguard public funds and ensure accountability in government subsidy programs, by designing smart subsidy and control mechanisms, by applying technology to efficiently gather and analyze information, and by ensuring the availability of adequate resources.