Fiscal Incidence in Moldova : A Commitment to Equity Analysis
This paper uses methods developed by the Commitment to Equity Institute and data from the Household Budget Survey to assess the effects of government taxation and social spending on poverty and inequality in Moldova. The paper presents the first de...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/903391568378086835/Fiscal-Incidence-in-Moldova-A-Commitment-to-Equity-Analysis http://hdl.handle.net/10986/32417 |
| Summary: | This paper uses methods developed by the
Commitment to Equity Institute and data from the Household
Budget Survey to assess the effects of government taxation
and social spending on poverty and inequality in Moldova.
The paper presents the first detailed distributional
analysis of the tax and expenditure sides of the fiscal
system, examining in particular the contribution of
different taxes and transfers to poverty and inequality
reduction in Moldova, as well as the cost-effectiveness of
different taxes and transfers in achieving these poverty and
inequality reduction goals. The analysis finds that the
tax-benefit system in Moldova is quite pro-poor and has a
significant effect on poverty and inequality, with the
poverty reduction effect being stronger for lower poverty
thresholds. Pensions provide much of the poverty-reducing
effect, which is not surprising, given that in an aging
society like Moldova, pensions are the main income source
for many households. Direct transfers are also quite
effective in reducing poverty and are also efficient,
providing a relatively high degree of poverty reduction per
dollar allocated to these programs, but their overall effect
on poverty is muted by their small budgetary allocations. |
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