The reforms of the tariff and trade controls are the basis of this chapter. Tariff reform has direct consequences on the rest of the economy leading to an analysis of the fiscal policy and domestic taxation. It examines the changes in direct and indirect taxes imposed by the central states. It also examines the continuing role of subsidies, using agriculture as an example, as a negative effect on the economy. The authors analyse the changes and suggest ways to improve the economic situation.
Keywords: central subsidy, fiscal deficits, protection, state expenditure, tariffs, taxation, trade controls