Publication: Navigating Fiscal Realities for Equitable Growth in Georgia
Loading...
Date
2025-05-05
ISSN
Published
2025-05-05
Author(s)
Editor(s)
Abstract
Georgia has made impressive economic progress over the past two decades, achieving strong and resilient economic growth and development despite numerous external and domestic shocks. This Fiscal Incidence Analysis (FIA) report serves as a baseline for evaluating current fiscal policy and potential policy reforms to enhance fiscal equity and sustainability. The Commitment to Equity (CEQ) methodology helps understand which population subgroups benefit the most from public expenditures and which subgroups are paying the taxes that finance those expenditures. It traces changes in the distribution of household incomes from market income (before taxes and transfers) to final income, identifying changes in income inequality and poverty attributable to different fiscal policy interventions such as taxes, transfers, and social expenditures. The equity aspect of fiscal policy is critical to informing Sustainable Development Goals Indicator 10.4.2, which measures the redistributive impact of fiscal policy. The FIA helps identify spending priorities based on their contributions to reducing poverty and inequality and examines how fiscal space can be created without increasing the burden on poor and vulnerable households.
Link to Data Set
Citation
“World Bank Group. 2025. Navigating Fiscal Realities for Equitable Growth in Georgia. © World Bank. http://hdl.handle.net/10986/43157 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Citations
Collections
Related items
Showing items related by metadata.
Publication Burkina Faso : Reducing Poverty Through Sustained Equitable Growth, Poverty Assessment(Washington, DC, 2005-06)Linking growth and poverty is a crucial element for evaluating the effectiveness of government policies under the Poverty Reduction Strategy Paper (PRSP) process. Burkina Faso has benefited from more than 3 percent growth in per-capita incomes since the devaluation in 1994, while the steady increase in incomes, albeit from a very low level, should over time have lifted some Burkinabe above the poverty line, and led to a reduction in poverty rates. Growth during 1998-2003 was driven by a large expansion of the primary sector, following the 1997-98 drought. This study uses household data from 1998 and 2003 data to a) consider the measurement of poverty over time; b) study the links between growth and poverty in 1998-2003, and under possible future growth paths; c) examine the relationship between poverty and social services; and, d) illustrate equity considerations in the execution of fiscal policy choices. Using a comparable poverty measure, it was found that poverty headcount declined by about 8 percentage points between 1998 and 2003. The poverty decline was stronger in rural, than in urban areas, and, inequality remained largely unchanged on the national level between 1998 and 2003. The conclusion that poverty declined between 1998 and 2003, is robust to changes in the poverty line. Using a household income measure, rather than consumption also allows drawing the conclusion that poverty declined during 1994-98. As regards correlates of poverty, results are similar for the 2003 survey as those found in previous studies. Larger household size, lower education levels, occupation in agriculture, and remoteness tend to be correlated with lower per-capita consumption levels. The decline in national poverty rates between 1998 and 2003 is largely a result of the growth in agricultural output, both in subsistence farming and cotton farming. The report suggests building on the PRSP strategic vision for broad-based growth, to improve the effectiveness, and focus of government actions that could drive subsistence farmers into market-based, and export activities, and broaden the poverty-reducing impact of cotton production. Furthermore, a review of the poverty and inequality impact of growth-supporting policies for rural and urban sectors into the PRSP, and policy design would recognize how government actions may support an equitable economic growth. In addition, the study on exogenous shocks could be deepened, to explicitly identify risks for the poverty reduction strategy, and identify possible government policy responses.Publication Ethiopia - Accelerating Equitable Growth : Country Economic Memorandum, Part 2. Thematic Chapters(Washington, DC, 2007-06)This report presents an update on the economic challenges facing Ethiopia with a focus on the shared goal of accelerating equitable growth. The starting point is the Government's own Plan for Accelerated and Sustained Development to End Poverty (PASDEP), which is in the process of finalization, and is designed to cover the period 2005-2010. This report proposes that the growth strategy should more explicitly adopt a "two-legged" approach that would both (a) consolidate and deepen an essentially balanced, broad-based and inclusive growth strategy and (b) adopt a more selective approach to speed up growth, allowing for identification and support for dynamic new activities, based on private and public sector discoveries, innovations, and partnerships. This report suggests ways forward to complement and strengthen the PASDEP. It brings together recent analysis and thinking from a range of sources, to put forth a storyline and key elements of the strategy in Part I. The second part provides a series of chapters on key themes - viz. recent and longer term economic developments, rural development, the private sector, the infrastructure challenge, and the institutions and governance. The report seeks to provide adequate coverage of the major challenges facing Ethiopia in its efforts to accelerate equitable growth, drawing on work across a range of themes including the Institutional and Governance Review.Publication Social Gains in the Balance : A Fiscal Policy Challenge for Latin America and the Caribbean(Washington, DC, 2014-02-24)In 2012, the Latin America and the Caribbean (LAC) region continued its successful drive to reduce poverty and build the middle class. The proportion of the region's 600 million people living in extreme poverty, defined in the region as life on less than $2.50 a day, was cut in half between 2003 and 2012 to 12.3 percent. Reflecting the upward mobility out of poverty, households vulnerable to falling back into poverty became the largest group in LAC in 2005, and represent almost 38 percent of the population. However, in the last two years, the share of vulnerable households has started to decline. The middle class, currently 34.3 percent of the population, is growing rapidly and is projected to replace the vulnerable as the largest economic group in LAC by 2016. The Southern Cone region (including Brazil) continued to be the most dynamic region and the main driver of poverty reduction in LAC, while poverty in Central America and Mexico proved more stubborn. About 68 percent of poverty reduction between 2003 and 2012 was driven by economic growth, with the remaining 32 percent arising from decline in inequality. Overall, equality of access to basic childhood goods and services has improved in recent years. Yet access can be further improved, and serious issues remain concerning the quality of those goods and services, particularly in education and housing infrastructure. Moreover, access increases with parental education and income or assets, reflecting low intergenerational mobility in many countries in the region. As with poverty reduction, most of the progress in equality of access since 2000 has come in the Southern Cone and the Andean regions, while many of Central America's countries managed only small improvements. There are also severe differences at the subnational level and between urban and rural areas, highlighting the need to strengthen the capacity of local governments to deliver high quality basic services to all their citizens.Publication Fiscal Policy in Colombia : Tapping Its Potential for a More Equitable Society(World Bank, Washington, DC, 2012-06)Colombia has the seventh highest Gini coefficient of income inequality in the world. The Santos Administration is aware of this challenge and is taking important measures to reduce disparities. The government is also aspiring to join the OECD, which exhibits much lower income disparities, mainly as a result of effective policies of fiscal redistribution. In Colombia, meanwhile, direct taxes, indirect taxes, and monetary transfers hardly dent the high Gini coefficient. To reduce income inequality, Colombian policy makers could consider introducing a more progressive tax-transfer system. This paper ranks alternative inequality-reducing fiscal policy options based on their effectiveness. It argues that there are potentially important redistributive potential gains available from tax reforms if combined with good spending decisions. It presents an illustrative reform package that would be sufficient for Colombia to reach levels of inequality similar to Chile or Costa Rica in a fiscally neutral manner. Nonetheless, further analysis is needed to explore all available policy options and identify those best suited for Colombia.Publication Myanmar Empowering People for Inclusive Growth(World Bank, Washington, DC, 2015-04-23)The Country Partnership Framework (CPF) will succeed the Myanmar interim strategy note (FY13-14) and be the first full country strategy for Myanmar since 1984. This CPF comes at a time of great opportunity for Myanmar; over the three year period covered in this CPF, the reforms initiated in 2011 have the potential to bring Myanmar into a new era of peace and prosperity. Myanmar s history, ethnic diversity, and geography combine into a unique set of development challenges and opportunities, including (i) emergence from a long period of international isolation; (ii) widespread poverty, despite rich land, water, and mineral resource endowments; (iii) a strategic location in the fastest-growing region in the world; (iv) the role of the military and associated groups in the economy; and (v) long standing armed conflict and ethnic and religious tensions. Myanmar is on a path of fundamental transformation, seeking to address all these challenges and opportunities simultaneously. Along with unique opportunities, the CPF supported program will also face substantial risks. Political risks associated with the elections in late 2015 include a polarization among stakeholders, policy discontinuity, and a slow-down of reforms. The national peace process to resolve decades-old conflicts remains fragile. On the economic front, risks include vulnerability to volatile oil and gas prices, spending pressures, an underdeveloped financial sector, and a weak regulatory framework, while overall capacity constraints may limit the country s ability to effectively manage macro-financial shocks. The design of the WBG program will help manage and mitigate these risks, and the WBG will regularly review risks and opportunities and adapt the CPF during implementation as warranted. A performance and learning review planned for late FY16 will facilitate the adaptation of the WBG program to country developments as needed.
Users also downloaded
Showing related downloaded files
No results found.