World Bank Group2025-05-052025-05-052025-05-05https://hdl.handle.net/10986/43157Georgia 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.en-USCC BY-NC 3.0 IGOECONOMIC GROWTHECONOMIC DEVELOPMENTFISCAL INCIDENCE ANALYSIS (FIA) REPORTINCOME INEQUALITYFISCAL POLICIESReportWorld Bankhttps://doi.org/10.1596/43157