Publication:
The Effects of Fiscal Policy on Inequality and Poverty in Iraq

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dc.contributor.authorAmjad, Beenish
dc.contributor.authorCabrera, Maynor
dc.contributor.authorPhadera, Lokendra
dc.date.accessioned2023-10-11T19:04:52Z
dc.date.available2023-10-11T19:04:52Z
dc.date.issued2023-10-11
dc.description.abstractThis study assesses the distributional impacts of public expenditures and taxes on poverty and inequality in the Republic of Iraq. The analysis uses the Commitment to Equity methodology and is based on the survey and government fiscal administrative data for fiscal year 2017. Results from the analysis show that Iraq’s fiscal policy is modestly progressive. It reduces short-term inequality by 6.7 and 3.0 Gini points with and without including public spending on education and health services. Both results are less than the global and upper-middle-income country averages. However, driven by direct transfers from poverty targeted social safety net cash transfers and generous pension allowances, the fiscal system reduces short-term poverty by 5 percentage points when evaluated using the international poverty line of US$5.5. This is one of the largest in the global and upper-middle-income country databases. These positive short-term results are achieved primarily because households pay almost no taxes. Iraq’s tax revenues are far lower than even the lower-income countries’ average. Unlike in most countries, Iraqi households in all quintiles, even the richest, are net beneficiaries of the fiscal policy. Given oil price volatility and the global movement away from fossil fuels, the high oil dependence and lack of a broader revenue base pose a significant fiscal sustainability challenge in Iraq.en
dc.identifierhttp://documents.worldbank.org/curated/en/099756510102321216/IDU0e287b0b90c36804788085bf0a11c7abd8ae4
dc.identifier.doi10.1596/1813-9450-10588
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40454
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Papers; 10588
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFISCAL POLICY
dc.subjectSOCIAL EXPENDITURE
dc.subjectTAXES
dc.subjectFISCAL INCIDENCE
dc.subjectINEQUALITY
dc.subjectPOVERTY
dc.subjectCOMMITTMENT TO EQUITY MODEL
dc.titleThe Effects of Fiscal Policy on Inequality and Poverty in Iraqen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleThe Effects of Fiscal Policy on Inequality and Poverty in Iraq
okr.date.disclosure2023-10-10
okr.date.lastmodified2023-10-10T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099756510102321216/IDU0e287b0b90c36804788085bf0a11c7abd8ae4
okr.guid099756510102321216
okr.identifier.docmidIDU-e287b0b9-c368-4788-85bf-a11c7abd8ae4
okr.identifier.doi10.1596/1813-9450-10588
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10588
okr.identifier.externaldocumentum34177896
okr.identifier.internaldocumentum34177896
okr.identifier.reportWPS10588
okr.import.id1987
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099756510102321216/pdf/IDU0e287b0b90c36804788085bf0a11c7abd8ae4.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryIraq
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Data Development and Capacity Building,Economic Policy,Economic Growth and Planning,Public Sector Management,Data production, accessibility and use,Macroeconomic & Structural Policy Modelling
okr.topicPoverty Reduction::Poverty Reduction Strategies
okr.topicSocial Development::Social Inclusion & Institutions
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicSocial Protections and Labor::Safety Nets and Transfers
okr.unitEFI-MNA-POV-Poverty and Equity (EMNPV)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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