Publication:
Poverty and Distributional Impact of Fiscal Policy in Dominican Republic

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dc.contributor.authorWorld Bank
dc.date.accessioned2023-11-28T20:21:39Z
dc.date.available2023-11-28T20:21:39Z
dc.date.issued2023-11-28
dc.description.abstractThis report assesses the impact of fiscal policy, both revenue and expenditure, on inequality and poverty in the Dominican Republic. On the revenue side, the analysis focuses on the personal income tax, the value added tax (tax on the transfer of industrialized goods and services, known as ITBIS in the Dominican Republic for its initials in Spanish) and excise taxes on alcoholic beverages, cigarettes, fuel products and telecommunication services. These taxes combined accounted for 7.8 percent of GDP in 2018, equivalent to 60 percent of total tax revenues. On the expenditure side, the analysis focuses on social protection benefits like direct cash and near-cash transfers (e.g., the school food-program and the school uniforms and supplies program), indirect subsidies (energy, water, and public transport), and in-kind benefits on education and health, which together account for 39.2 percent of total government expenditures and 85.9 percent of social expenditures. The remainder of this report is organized as follows: Section II describes the Dominican Republic’s tax systems and government spending in 2018 and compares them with those of selected Latin American countries. Section III includes a description of the data, methodology and assumptions made in carrying out the analysis in this report. The main results are provided in Section IV, starting with fiscal policy’s net impact on inequality, followed by its impact on poverty incidence. A comparison with other countries is then provided. Section IV also includes a detailed analysis of the distributional impact of taxes, social spending, and subsidies, to demonstrate their impact on the welfare of the poor. The report’s main conclusions are presented in Section V.en
dc.description.abstractThis report assesses the impact of fiscal policy, both revenue and expenditure, on inequality and poverty in the Dominican Republic. On the revenue side, the analysis focuses on the personal income tax, the value added tax (tax on the transfer of industrialized goods and services, known as ITBIS in the Dominican Republic for its initials in Spanish) and excise taxes on alcoholic beverages, cigarettes, fuel products and telecommunication services. These taxes combined accounted for 7.8 percent of GDP in 2018, equivalent to 60 percent of total tax revenues. On the expenditure side, the analysis focuses on social protection benefits like direct cash and near-cash transfers (e.g., the school food-program and the school uniforms and supplies program), indirect subsidies (energy, water, and public transport), and in-kind benefits on education and health, which together account for 39.2 percent of total government expenditures and 85.9 percent of social expenditures. The remainder of this report is organized as follows: Section II describes the Dominican Republic’s tax systems and government spending in 2018 and compares them with those of selected Latin American countries. Section III includes a description of the data, methodology and assumptions made in carrying out the analysis in this report. The main results are provided in Section IV, starting with fiscal policy’s net impact on inequality, followed by its impact on poverty incidence. A comparison with other countries is then provided. Section IV also includes a detailed analysis of the distributional impact of taxes, social spending, and subsidies, to demonstrate their impact on the welfare of the poor. The report’s main conclusions are presented in Section V.es
dc.identifierhttp://documents.worldbank.org/curated/en/099454211202324336/IDU0a89bf1940a00093e30adef81507a10
dc.identifier.doi10.1596/40655
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40655
dc.languageEnglish
dc.language.isoen
dc.publisherWashington, DC
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectTAX SYSTEM
dc.subjectFISCAL POLICY
dc.subjectFISCAL SYSTEM
dc.subjectINEQUALITY REDUCTION
dc.subjectPOVERTY REDUCTION
dc.subjectDIRECT TRANSFERS
dc.titlePoverty and Distributional Impact of Fiscal Policy in Dominican Republicen
dc.titleImpacto en Pobreza y Distributivo de la Política Fiscal en República Dominicanaes
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titlePoverty and Distributional Impact of Fiscal Policy in Dominican Republic
okr.date.disclosure2023-11-22
okr.date.lastmodified2023-11-22T00:00:00Zen
okr.date.lastmodified2023-11-22T00:00:00Zes
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099454211202324336/IDU0a89bf1940a00093e30adef81507a10
okr.guid099454211202324336
okr.guid099456311202331521
okr.identifier.docmidIDU-a89bf194-a30e-4090-93e3-adef81507a10
okr.identifier.doihttp://dx.doi.org/10.1596/40655
okr.identifier.externaldocumentum34199596
okr.identifier.internaldocumentum34199596
okr.identifier.report185898
okr.import.id2402
okr.importedtrueen
okr.importedtruees
okr.language.supporteden
okr.language.supportedes
okr.pdfurlhttp://documents.worldbank.org/curated/en/099454211202324336/pdf/IDU0a89bf1940a00093e30adef81507a10.pdfen
okr.pdfurlhttp://documents.worldbank.org/curated/en/099456311202331521/pdf/IDU020435a5d070b089bf0ad4a6bc95bfb.pdfes
okr.region.administrativeLatin America & Caribbean
okr.region.countryDominican Republic
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Mitigation,Human Development and Gender,Economic Policy,Economic Growth and Planning,Environment and Natural Resource Management,Labor Market Policy and Programs,Climate change,Adaptation,Spatial Growth,Labor Market Institutions
okr.topicEducation::Access & Equity in Basic Education
okr.topicPoverty Reduction::Conditional Cash Transfers
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicEducation::Education For All
okr.txturlhttp://documents.worldbank.org/curated/en/099456311202331521/text/IDU020435a5d070b089bf0ad4a6bc95bfb.txtes
okr.unitEFI-LCR-POV-Poverty and Equity (ELCPV)
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