Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17
This study analyzes the incidence of public revenues (tax collection) and expenditures (including direct and indirect transfers, indirect subsidies, and in-kind transfers) on the level of poverty and inequality in Uganda, using the internationally...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/647301572456138632/Impact-of-Fiscal-Policy-on-Poverty-and-Inequality-in-Uganda-Fiscal-Incidence-Analysis-Using-the-UNHS-2016-17 http://hdl.handle.net/10986/32660 |
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okr-10986-326602022-09-20T00:14:17Z Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 Mejia-Mantilla, Carolina Fajardo-Gonzalez, Johanna Goldman, Maya Jellema, Jon Renda, Haley FISCAL POLICY INEQUALITY POVERTY TAXATION FISCAL INCIDENCE HOUSEHOLD SURVEYS TRANSFERS PUBLIC EXPENDITURES SUBSIDIES GINI COEFFICIENT DISTRIBUTIONAL IMPACT This study analyzes the incidence of public revenues (tax collection) and expenditures (including direct and indirect transfers, indirect subsidies, and in-kind transfers) on the level of poverty and inequality in Uganda, using the internationally recognized methodology developed by the Commitment to Equity institute. The results show that Uganda's fiscal policy is moderately equalizing and lowers the Gini coefficient by 3.2 points. The personal income tax, followed by education in-kind transfers, are the biggest contributors to reducing inequality. Although equalizing, fiscal policy is poverty-inducing in Uganda. Direct transfers are pro-poor in distribution but are not large enough to counteract the purchasing power reductions from indirect taxes; the poverty headcount ratio increases by 2.3 percentage points. Going forward, the combination of raising additional revenue by broadening the personal income tax base and removing valued-added tax exemptions while using the additional resources to increase the size and coverage of pro-poor direct transfers programs may alleviate poverty and reduce inequality. 2019-11-21T17:23:23Z 2019-11-21T17:23:23Z 2019-10 Working Paper http://documents.worldbank.org/curated/en/647301572456138632/Impact-of-Fiscal-Policy-on-Poverty-and-Inequality-in-Uganda-Fiscal-Incidence-Analysis-Using-the-UNHS-2016-17 http://hdl.handle.net/10986/32660 English Policy Research Working Paper;No. 9051 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Uganda |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FISCAL POLICY INEQUALITY POVERTY TAXATION FISCAL INCIDENCE HOUSEHOLD SURVEYS TRANSFERS PUBLIC EXPENDITURES SUBSIDIES GINI COEFFICIENT DISTRIBUTIONAL IMPACT |
| spellingShingle |
FISCAL POLICY INEQUALITY POVERTY TAXATION FISCAL INCIDENCE HOUSEHOLD SURVEYS TRANSFERS PUBLIC EXPENDITURES SUBSIDIES GINI COEFFICIENT DISTRIBUTIONAL IMPACT Mejia-Mantilla, Carolina Fajardo-Gonzalez, Johanna Goldman, Maya Jellema, Jon Renda, Haley Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| geographic_facet |
Africa Uganda |
| relation |
Policy Research Working Paper;No. 9051 |
| description |
This study analyzes the incidence of
public revenues (tax collection) and expenditures (including
direct and indirect transfers, indirect subsidies, and
in-kind transfers) on the level of poverty and inequality in
Uganda, using the internationally recognized methodology
developed by the Commitment to Equity institute. The results
show that Uganda's fiscal policy is moderately
equalizing and lowers the Gini coefficient by 3.2 points.
The personal income tax, followed by education in-kind
transfers, are the biggest contributors to reducing
inequality. Although equalizing, fiscal policy is
poverty-inducing in Uganda. Direct transfers are pro-poor
in distribution but are not large enough to counteract the
purchasing power reductions from indirect taxes; the poverty
headcount ratio increases by 2.3 percentage points. Going
forward, the combination of raising additional revenue by
broadening the personal income tax base and removing
valued-added tax exemptions while using the additional
resources to increase the size and coverage of pro-poor
direct transfers programs may alleviate poverty and reduce inequality. |
| format |
Working Paper |
| author |
Mejia-Mantilla, Carolina Fajardo-Gonzalez, Johanna Goldman, Maya Jellema, Jon Renda, Haley |
| author_facet |
Mejia-Mantilla, Carolina Fajardo-Gonzalez, Johanna Goldman, Maya Jellema, Jon Renda, Haley |
| author_sort |
Mejia-Mantilla, Carolina |
| title |
Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| title_short |
Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| title_full |
Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| title_fullStr |
Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| title_full_unstemmed |
Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17 |
| title_sort |
impact of fiscal policy on poverty and inequality in uganda : fiscal incidence analysis using the unhs 2016/17 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/647301572456138632/Impact-of-Fiscal-Policy-on-Poverty-and-Inequality-in-Uganda-Fiscal-Incidence-Analysis-Using-the-UNHS-2016-17 http://hdl.handle.net/10986/32660 |
| _version_ |
1764477014628106240 |