The Distributional Impact of Fiscal Policy in South Africa
This 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 eff...
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| Format: | Publications & Research |
| Language: | English en_US |
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World Bank Group, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/02/23984236/distributional-impact-fiscal-policy-south-africa http://hdl.handle.net/10986/21447 |
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okr-10986-21447 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTING APARTHEID BASIC EDUCATION BENCHMARK BENCHMARKS BENEFICIARIES BENEFICIARY BUDGET REVIEW CAPITAL ASSETS CAPITAL GAINS CASH TRANSFER CASH TRANSFERS COMMODITIES CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORPORATE TAXES DEBT DEBT BURDEN DEDUCTIONS DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DIVIDENDS ECONOMIC GROWTH ELECTRICITY EMERGING MARKET EMERGING MARKET COUNTRIES EQUAL SHARE EXCHANGE RATE EXCISE TAX EXCISE TAXES EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL SERVICES FISCAL BALANCE FISCAL DEFICIT FISCAL MANAGEMENT FISCAL POLICY GDP GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURE GOVERNMENT REVENUE GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HEALTH SPENDING HORIZONTAL EQUITY HOUSEHOLD INCOME HOUSING INCOME INCOME DISTRIBUTION INCOME DYNAMICS INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOME TAX INCOME TAXES INCOMES INDIRECT SUBSIDIES INDIRECT SUBSIDY INDIRECT TAXATION INELASTIC DEMAND INFLATION INFRASTRUCTURE INVESTMENTS INSTRUMENT INSURANCE INTEREST INCOME INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL TRADE INVENTORIES INVESTMENT INCOME INVESTMENT SPENDING LAND USE LEVIES LEVY LORENZ CURVE MACROECONOMICS MICRO-DATA MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MUNICIPAL SERVICES MUNICIPALITIES NATIONAL BUDGET NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL TREASURY NET DEBT NONTAX REVENUE OLD -AGE PENSION OLD-AGE PENSION OLD-AGE PENSIONS OUTPUT PAYROLL TAXES PENSION PENSION FUNDS PENSION REFORM PENSIONS PER CAPITA INCOME PERSONAL INCOME PERSONAL INCOME TAX PERSONAL INCOME TAXES POWER PARITY PRIVATE SECTOR PROGRESSIVE TAX PROPERTY TAXES PUBLIC PUBLIC GOODS PUBLIC POLICY PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING PURCHASING POWER REDISTRIBUTIVE EFFECTS REGRESSIVE TAX RESERVE RESERVE BANK RETURNS REVENUE SOURCES ROADS SALES TAX SOCIAL SAFETY NET SOCIAL SECURITY TAXES SWAP TAX TAX ADMINISTRATION TAX BASE TAX COLLECTIONS TAX EVASION TAX INCIDENCE TAX POLICY TAX RATE TAX REBATES TAX RETURNS TAX REVENUE TAX SHIFTING TAX SYSTEM TAXABLE INCOME TAXATION TAXPAYERS TIME CONSTRAINTS TOTAL REVENUE TRADE TAXES TREASURY UNDERESTIMATES UNEMPLOYMENT URBAN SERVICES VALUE ADDED VALUE ADDED TAX WAGES |
| spellingShingle |
ACCOUNTING APARTHEID BASIC EDUCATION BENCHMARK BENCHMARKS BENEFICIARIES BENEFICIARY BUDGET REVIEW CAPITAL ASSETS CAPITAL GAINS CASH TRANSFER CASH TRANSFERS COMMODITIES CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORPORATE TAXES DEBT DEBT BURDEN DEDUCTIONS DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DIVIDENDS ECONOMIC GROWTH ELECTRICITY EMERGING MARKET EMERGING MARKET COUNTRIES EQUAL SHARE EXCHANGE RATE EXCISE TAX EXCISE TAXES EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL SERVICES FISCAL BALANCE FISCAL DEFICIT FISCAL MANAGEMENT FISCAL POLICY GDP GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURE GOVERNMENT REVENUE GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HEALTH SPENDING HORIZONTAL EQUITY HOUSEHOLD INCOME HOUSING INCOME INCOME DISTRIBUTION INCOME DYNAMICS INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOME TAX INCOME TAXES INCOMES INDIRECT SUBSIDIES INDIRECT SUBSIDY INDIRECT TAXATION INELASTIC DEMAND INFLATION INFRASTRUCTURE INVESTMENTS INSTRUMENT INSURANCE INTEREST INCOME INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL TRADE INVENTORIES INVESTMENT INCOME INVESTMENT SPENDING LAND USE LEVIES LEVY LORENZ CURVE MACROECONOMICS MICRO-DATA MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MUNICIPAL SERVICES MUNICIPALITIES NATIONAL BUDGET NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL TREASURY NET DEBT NONTAX REVENUE OLD -AGE PENSION OLD-AGE PENSION OLD-AGE PENSIONS OUTPUT PAYROLL TAXES PENSION PENSION FUNDS PENSION REFORM PENSIONS PER CAPITA INCOME PERSONAL INCOME PERSONAL INCOME TAX PERSONAL INCOME TAXES POWER PARITY PRIVATE SECTOR PROGRESSIVE TAX PROPERTY TAXES PUBLIC PUBLIC GOODS PUBLIC POLICY PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING PURCHASING POWER REDISTRIBUTIVE EFFECTS REGRESSIVE TAX RESERVE RESERVE BANK RETURNS REVENUE SOURCES ROADS SALES TAX SOCIAL SAFETY NET SOCIAL SECURITY TAXES SWAP TAX TAX ADMINISTRATION TAX BASE TAX COLLECTIONS TAX EVASION TAX INCIDENCE TAX POLICY TAX RATE TAX REBATES TAX RETURNS TAX REVENUE TAX SHIFTING TAX SYSTEM TAXABLE INCOME TAXATION TAXPAYERS TIME CONSTRAINTS TOTAL REVENUE TRADE TAXES TREASURY UNDERESTIMATES UNEMPLOYMENT URBAN SERVICES VALUE ADDED VALUE ADDED TAX WAGES Inchauste, Gabriela Lustig, Nora Maboshe, Mashekwa Purfield, Catriona Woolard, Ingrid The Distributional Impact of Fiscal Policy in South Africa |
| geographic_facet |
Africa South Africa |
| relation |
Policy Research Working Paper;No. 7194 |
| description |
This 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. |
| format |
Publications & Research |
| author |
Inchauste, Gabriela Lustig, Nora Maboshe, Mashekwa Purfield, Catriona Woolard, Ingrid |
| author_facet |
Inchauste, Gabriela Lustig, Nora Maboshe, Mashekwa Purfield, Catriona Woolard, Ingrid |
| author_sort |
Inchauste, Gabriela |
| title |
The Distributional Impact of Fiscal Policy in South Africa |
| title_short |
The Distributional Impact of Fiscal Policy in South Africa |
| title_full |
The Distributional Impact of Fiscal Policy in South Africa |
| title_fullStr |
The Distributional Impact of Fiscal Policy in South Africa |
| title_full_unstemmed |
The Distributional Impact of Fiscal Policy in South Africa |
| title_sort |
distributional impact of fiscal policy in south africa |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/02/23984236/distributional-impact-fiscal-policy-south-africa http://hdl.handle.net/10986/21447 |
| _version_ |
1764448287769755648 |
| spelling |
okr-10986-214472021-04-23T14:04:02Z The Distributional Impact of Fiscal Policy in South Africa Inchauste, Gabriela Lustig, Nora Maboshe, Mashekwa Purfield, Catriona Woolard, Ingrid ACCOUNTING APARTHEID BASIC EDUCATION BENCHMARK BENCHMARKS BENEFICIARIES BENEFICIARY BUDGET REVIEW CAPITAL ASSETS CAPITAL GAINS CASH TRANSFER CASH TRANSFERS COMMODITIES CONSUMERS CONSUMPTION TAXES CORPORATE INCOME TAX CORPORATE TAXES DEBT DEBT BURDEN DEDUCTIONS DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DIVIDENDS ECONOMIC GROWTH ELECTRICITY EMERGING MARKET EMERGING MARKET COUNTRIES EQUAL SHARE EXCHANGE RATE EXCISE TAX EXCISE TAXES EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL SERVICES FISCAL BALANCE FISCAL DEFICIT FISCAL MANAGEMENT FISCAL POLICY GDP GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURE GOVERNMENT REVENUE GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HEALTH SPENDING HORIZONTAL EQUITY HOUSEHOLD INCOME HOUSING INCOME INCOME DISTRIBUTION INCOME DYNAMICS INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOME TAX INCOME TAXES INCOMES INDIRECT SUBSIDIES INDIRECT SUBSIDY INDIRECT TAXATION INELASTIC DEMAND INFLATION INFRASTRUCTURE INVESTMENTS INSTRUMENT INSURANCE INTEREST INCOME INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL TRADE INVENTORIES INVESTMENT INCOME INVESTMENT SPENDING LAND USE LEVIES LEVY LORENZ CURVE MACROECONOMICS MICRO-DATA MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MUNICIPAL SERVICES MUNICIPALITIES NATIONAL BUDGET NATIONAL DEVELOPMENT NATIONAL INCOME NATIONAL TREASURY NET DEBT NONTAX REVENUE OLD -AGE PENSION OLD-AGE PENSION OLD-AGE PENSIONS OUTPUT PAYROLL TAXES PENSION PENSION FUNDS PENSION REFORM PENSIONS PER CAPITA INCOME PERSONAL INCOME PERSONAL INCOME TAX PERSONAL INCOME TAXES POWER PARITY PRIVATE SECTOR PROGRESSIVE TAX PROPERTY TAXES PUBLIC PUBLIC GOODS PUBLIC POLICY PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING PURCHASING POWER REDISTRIBUTIVE EFFECTS REGRESSIVE TAX RESERVE RESERVE BANK RETURNS REVENUE SOURCES ROADS SALES TAX SOCIAL SAFETY NET SOCIAL SECURITY TAXES SWAP TAX TAX ADMINISTRATION TAX BASE TAX COLLECTIONS TAX EVASION TAX INCIDENCE TAX POLICY TAX RATE TAX REBATES TAX RETURNS TAX REVENUE TAX SHIFTING TAX SYSTEM TAXABLE INCOME TAXATION TAXPAYERS TIME CONSTRAINTS TOTAL REVENUE TRADE TAXES TREASURY UNDERESTIMATES UNEMPLOYMENT URBAN SERVICES VALUE ADDED VALUE ADDED TAX WAGES This 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. 2015-02-13T19:02:29Z 2015-02-13T19:02:29Z 2015-02 http://documents.worldbank.org/curated/en/2015/02/23984236/distributional-impact-fiscal-policy-south-africa http://hdl.handle.net/10986/21447 English en_US Policy Research Working Paper;No. 7194 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa South Africa |