Of this year's total, $420 billion represents the one-off subsidy implicit in the Treasury's planned $700 billion of injections of capital and loan guarantees into the financial system and its "effective" guarantees of the two big mortgage agencies, Fannie Mae and Freddie Mac.
"A one-off premium subsidy by the state has no long-term market creation value," states Rupalee Ruchismita, executive director of the Institute of Financial Management and Research's Centre for Insurance and Risk Management (CIRM) in Chennai, India.
You can't write this one off.
But Prime Minister Poul Nyrup Rasmussen said today that Denmark would give the islands only three to four years before cutting off subsidies, which account for one-third of the territory's budget.
When they set it up, we were supposed to be off subsidies in three years.
For instance, Verizon recently killed off subsidies and contracts.
The agency's new funding strategy puts far greater emphasis on theatre groups, art centres, galleries and festivals competing against each other for subsidies for one-off projects from next April to help it cope with a £2.1m cut in its funding from the Scottish government.
For instance, inflation has jumped mainly because the recent removal of fuel subsidies led to a one-off rise in the cost of petrol.
Reversing it will not happen through one-off increases in the minimum wage or the generosity of the wage subsidies.
The blip, it seemed, was caused by a series of one-off events: unusual weather, the collapse of Russian agriculture, and reform of farm subsidies in America and Europe.But some analysts fear there could be more trouble in store.
The PBO assumed that if the government decreased its subsidies to universities and deregulated university fees, there would be a one-off increase in fees of 40%, followed by annual increases of 2% thereafter.
