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...

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Main Authors: Cojocaru, Alexandru, Matytsin, Mikhail, Prohnitchi, Valeriu
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
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
id okr-10986-32417
recordtype oai_dc
spelling okr-10986-324172022-09-20T00:13:42Z Fiscal Incidence in Moldova : A Commitment to Equity Analysis Cojocaru, Alexandru Matytsin, Mikhail Prohnitchi, Valeriu FISCAL INCIDENCE FISCAL POLICY FISCAL TRENDS INCOME INEQUALITY POVERTY SOCIAL SPENDING SOCIAL ASSISTANCE TAXATION 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. 2019-09-18T21:23:51Z 2019-09-18T21:23:51Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/903391568378086835/Fiscal-Incidence-in-Moldova-A-Commitment-to-Equity-Analysis http://hdl.handle.net/10986/32417 English Policy Research Working Paper;No. 9010 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Moldova
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FISCAL INCIDENCE
FISCAL POLICY
FISCAL TRENDS
INCOME INEQUALITY
POVERTY
SOCIAL SPENDING
SOCIAL ASSISTANCE
TAXATION
spellingShingle FISCAL INCIDENCE
FISCAL POLICY
FISCAL TRENDS
INCOME INEQUALITY
POVERTY
SOCIAL SPENDING
SOCIAL ASSISTANCE
TAXATION
Cojocaru, Alexandru
Matytsin, Mikhail
Prohnitchi, Valeriu
Fiscal Incidence in Moldova : A Commitment to Equity Analysis
geographic_facet Europe and Central Asia
Moldova
relation Policy Research Working Paper;No. 9010
description 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.
format Working Paper
author Cojocaru, Alexandru
Matytsin, Mikhail
Prohnitchi, Valeriu
author_facet Cojocaru, Alexandru
Matytsin, Mikhail
Prohnitchi, Valeriu
author_sort Cojocaru, Alexandru
title Fiscal Incidence in Moldova : A Commitment to Equity Analysis
title_short Fiscal Incidence in Moldova : A Commitment to Equity Analysis
title_full Fiscal Incidence in Moldova : A Commitment to Equity Analysis
title_fullStr Fiscal Incidence in Moldova : A Commitment to Equity Analysis
title_full_unstemmed Fiscal Incidence in Moldova : A Commitment to Equity Analysis
title_sort fiscal incidence in moldova : a commitment to equity analysis
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/903391568378086835/Fiscal-Incidence-in-Moldova-A-Commitment-to-Equity-Analysis
http://hdl.handle.net/10986/32417
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