Publication:
The Distributional Impact of Fiscal Policy in South Africa

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dc.contributor.authorMaboshe, Mashekwa
dc.contributor.authorInchauste, Gabriela
dc.contributor.authorPurfield, Catriona
dc.contributor.authorLustig, Nora
dc.contributor.authorWoolard, Ingrid
dc.date.accessioned2015-02-13T19:02:29Z
dc.date.available2015-02-13T19:02:29Z
dc.date.issued2015-02
dc.description.abstractThis paper uses the 2010/11 Income and Expenditure Survey for South Africa to analyze the progressivity of the main tax and social spending programs and quantify their impact on poverty and inequality. The paper also assesses the redistributive effectiveness of fiscal interventions given the resources used. Because it applies the Commitment to Equity methodology, the results for South Africa can be compared with other middle-income countries for which the framework has also been applied. The main results are twofold. First, the burden of taxes -- namely the personal income tax, the value added tax, excises on alcohol and tobacco, and the fuel levy -- falls on the richest in South Africa and social spending results in sizable increases in the incomes of the poor. In other words, for the components examined, the tax and social spending system is overall progressive. Second, for these elements, fiscal policy in South Africa achieves appreciable reductions in income inequality and poverty. Moreover, these reductions are the largest achieved in the emerging market countries that have so far been included in the Commitment to Equity project. Although fiscal policy is equalizing and poverty-reducing, the levels of inequality and poverty that remain still rank among the highest in middle-income countries. Looking ahead, as South Africa grapples with slow economic growth, a high fiscal deficit, and a rising debt burden, addressing the twin challenges of high inequality and poverty will require not only much improved quality of public services, but also higher and more inclusive economic growth.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/02/23984236/distributional-impact-fiscal-policy-south-africa
dc.identifier.doi10.1596/1813-9450-7194
dc.identifier.urihttps://hdl.handle.net/10986/21447
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7194
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAPARTHEID
dc.subjectBASIC EDUCATION
dc.subjectBENCHMARK
dc.subjectBENCHMARKS
dc.subjectBENEFICIARIES
dc.subjectBENEFICIARY
dc.subjectBUDGET REVIEW
dc.subjectCAPITAL ASSETS
dc.subjectCAPITAL GAINS
dc.subjectCASH TRANSFER
dc.subjectCASH TRANSFERS
dc.subjectCOMMODITIES
dc.subjectCONSUMERS
dc.subjectCONSUMPTION TAXES
dc.subjectCORPORATE INCOME TAX
dc.subjectCORPORATE TAXES
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEDUCTIONS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDISPOSABLE INCOME
dc.subjectDISTRIBUTION OF INCOME
dc.subjectDIVIDENDS
dc.subjectECONOMIC GROWTH
dc.subjectELECTRICITY
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET COUNTRIES
dc.subjectEQUAL SHARE
dc.subjectEXCHANGE RATE
dc.subjectEXCISE TAX
dc.subjectEXCISE TAXES
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL SERVICES
dc.subjectFISCAL BALANCE
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL MANAGEMENT
dc.subjectFISCAL POLICY
dc.subjectGDP
dc.subjectGINI COEFFICIENT
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT REVENUE
dc.subjectGOVERNMENT SPENDING
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectHEALTH SPENDING
dc.subjectHORIZONTAL EQUITY
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSING
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME DYNAMICS
dc.subjectINCOME GROUP
dc.subjectINCOME GROUPS
dc.subjectINCOME INEQUALITY
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOME TAX
dc.subjectINCOME TAXES
dc.subjectINCOMES
dc.subjectINDIRECT SUBSIDIES
dc.subjectINDIRECT SUBSIDY
dc.subjectINDIRECT TAXATION
dc.subjectINELASTIC DEMAND
dc.subjectINFLATION
dc.subjectINFRASTRUCTURE INVESTMENTS
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINTEREST INCOME
dc.subjectINTEREST PAYMENTS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORIES
dc.subjectINVESTMENT INCOME
dc.subjectINVESTMENT SPENDING
dc.subjectLAND USE
dc.subjectLEVIES
dc.subjectLEVY
dc.subjectLORENZ CURVE
dc.subjectMACROECONOMICS
dc.subjectMICRO-DATA
dc.subjectMIDDLE-INCOME COUNTRIES
dc.subjectMIDDLE-INCOME COUNTRY
dc.subjectMONETARY FUND
dc.subjectMUNICIPAL SERVICES
dc.subjectMUNICIPALITIES
dc.subjectNATIONAL BUDGET
dc.subjectNATIONAL DEVELOPMENT
dc.subjectNATIONAL INCOME
dc.subjectNATIONAL TREASURY
dc.subjectNET DEBT
dc.subjectNONTAX REVENUE
dc.subjectOLD -AGE PENSION
dc.subjectOLD-AGE PENSION
dc.subjectOLD-AGE PENSIONS
dc.subjectOUTPUT
dc.subjectPAYROLL TAXES
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPENSION REFORM
dc.subjectPENSIONS
dc.subjectPER CAPITA INCOME
dc.subjectPERSONAL INCOME
dc.subjectPERSONAL INCOME TAX
dc.subjectPERSONAL INCOME TAXES
dc.subjectPOWER PARITY
dc.subjectPRIVATE SECTOR
dc.subjectPROGRESSIVE TAX
dc.subjectPROPERTY TAXES
dc.subjectPUBLIC
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SPENDING
dc.subjectPURCHASING POWER
dc.subjectREDISTRIBUTIVE EFFECTS
dc.subjectREGRESSIVE TAX
dc.subjectRESERVE
dc.subjectRESERVE BANK
dc.subjectRETURNS
dc.subjectREVENUE SOURCES
dc.subjectROADS
dc.subjectSALES TAX
dc.subjectSOCIAL SAFETY NET
dc.subjectSOCIAL SECURITY TAXES
dc.subjectSWAP
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTAX BASE
dc.subjectTAX COLLECTIONS
dc.subjectTAX EVASION
dc.subjectTAX INCIDENCE
dc.subjectTAX POLICY
dc.subjectTAX RATE
dc.subjectTAX REBATES
dc.subjectTAX RETURNS
dc.subjectTAX REVENUE
dc.subjectTAX SHIFTING
dc.subjectTAX SYSTEM
dc.subjectTAXABLE INCOME
dc.subjectTAXATION
dc.subjectTAXPAYERS
dc.subjectTIME CONSTRAINTS
dc.subjectTOTAL REVENUE
dc.subjectTRADE TAXES
dc.subjectTREASURY
dc.subjectUNDERESTIMATES
dc.subjectUNEMPLOYMENT
dc.subjectURBAN SERVICES
dc.subjectVALUE ADDED
dc.subjectVALUE ADDED TAX
dc.subjectWAGES
dc.titleThe Distributional Impact of Fiscal Policy in South Africaen
dspace.entity.typePublication
okr.crossref.titleThe Distributional Impact of Fiscal Policy in South Africa
okr.date.doiregistration2025-04-10T10:17:18.300670Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/02/23984236/distributional-impact-fiscal-policy-south-africa
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.guid502441468299632287
okr.identifier.doi10.1596/1813-9450-7194
okr.identifier.externaldocumentum000158349_20150211093731
okr.identifier.internaldocumentum23984236
okr.identifier.reportWPS7194
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/02/11/000158349_20150211093731/Rendered/PDF/WPS7194.pdfen
okr.region.administrativeAfrica
okr.region.countrySouth Africa
okr.topicTaxation and Subsidies
okr.topicPublic Sector Economics
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPublic Sector Development
okr.topicMacroeconomics and Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Policy, Institutions and Governance
okr.topicPoverty Reduction::Equity and Development
okr.unitPoverty Global Practice Group and the Macroeconomics and Fiscal Management Global Practice Group
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relation.isAuthorOfPublication.latestForDiscoveryfc26cf5b-c052-5fbd-8fd6-9e8eae98d918
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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