The Distributive Impact of Taxes and Expenditures in Colombia
Colombia has reduced extreme poverty in the past 16 years by almost half, moderate poverty by 22 percentage points, and made more than four million Colombians jump the threshold of multidimensional poverty. However, it remains one of the most unequ...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/486571583244394872/The-Distributive-Impact-of-Taxes-and-Expenditures-in-Colombia http://hdl.handle.net/10986/33414 |
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okr-10986-334142022-09-20T00:12:34Z The Distributive Impact of Taxes and Expenditures in Colombia Jairo, Nunez Olivieri, Sergio Parra, Julieth Pico, Julieth FISCAL POLICY TAXATION FISCAL INCIDENCE INEQUALITY DISTRIBUTIONAL IMPACT PUBLIC EXPENDITURE POVERTY SOCIAL SPENDING Colombia has reduced extreme poverty in the past 16 years by almost half, moderate poverty by 22 percentage points, and made more than four million Colombians jump the threshold of multidimensional poverty. However, it remains one of the most unequal countries in the region, after Brazil and Panama. Fiscal policy is one of the instruments that allow governments to speed up the decline in inequality levels and reduce poverty. This study presents an exhaustive and comprehensive analysis of the distributional impacts of taxes and expenditures in Colombia in 2017. It makes a methodological comparison with the Commitment to Equity, which was previously implemented, and includes multiple improvements in the methodology. The results suggest that the combined effect of taxes and social spending in Colombia contributes to poverty reduction between 0.3 and 2.6 percentage points for US$5.5 and US$3.2 per day per person respectively, while inequality is reduced by almost one Gini point. Taxes and direct transfers, as well as indirect transfers, are progressive and pro-poor, while indirect taxes are regressive and contribute to an increase in inequality. Finally, transfers in-kind for education and health services are progressive and contribute to the reduction of inequality. 2020-03-05T16:01:36Z 2020-03-05T16:01:36Z 2020-03 Working Paper http://documents.worldbank.org/curated/en/486571583244394872/The-Distributive-Impact-of-Taxes-and-Expenditures-in-Colombia http://hdl.handle.net/10986/33414 English Policy Research Working Paper;No. 9171 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 Latin America & Caribbean Colombia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FISCAL POLICY TAXATION FISCAL INCIDENCE INEQUALITY DISTRIBUTIONAL IMPACT PUBLIC EXPENDITURE POVERTY SOCIAL SPENDING |
| spellingShingle |
FISCAL POLICY TAXATION FISCAL INCIDENCE INEQUALITY DISTRIBUTIONAL IMPACT PUBLIC EXPENDITURE POVERTY SOCIAL SPENDING Jairo, Nunez Olivieri, Sergio Parra, Julieth Pico, Julieth The Distributive Impact of Taxes and Expenditures in Colombia |
| geographic_facet |
Latin America & Caribbean Colombia |
| relation |
Policy Research Working Paper;No. 9171 |
| description |
Colombia has reduced extreme poverty in
the past 16 years by almost half, moderate poverty by 22
percentage points, and made more than four million
Colombians jump the threshold of multidimensional poverty.
However, it remains one of the most unequal countries in the
region, after Brazil and Panama. Fiscal policy is one of the
instruments that allow governments to speed up the decline
in inequality levels and reduce poverty. This study presents
an exhaustive and comprehensive analysis of the
distributional impacts of taxes and expenditures in Colombia
in 2017. It makes a methodological comparison with the
Commitment to Equity, which was previously implemented, and
includes multiple improvements in the methodology. The
results suggest that the combined effect of taxes and social
spending in Colombia contributes to poverty reduction
between 0.3 and 2.6 percentage points for US$5.5 and US$3.2
per day per person respectively, while inequality is reduced
by almost one Gini point. Taxes and direct transfers, as
well as indirect transfers, are progressive and pro-poor,
while indirect taxes are regressive and contribute to an
increase in inequality. Finally, transfers in-kind for
education and health services are progressive and contribute
to the reduction of inequality. |
| format |
Working Paper |
| author |
Jairo, Nunez Olivieri, Sergio Parra, Julieth Pico, Julieth |
| author_facet |
Jairo, Nunez Olivieri, Sergio Parra, Julieth Pico, Julieth |
| author_sort |
Jairo, Nunez |
| title |
The Distributive Impact of Taxes and Expenditures in Colombia |
| title_short |
The Distributive Impact of Taxes and Expenditures in Colombia |
| title_full |
The Distributive Impact of Taxes and Expenditures in Colombia |
| title_fullStr |
The Distributive Impact of Taxes and Expenditures in Colombia |
| title_full_unstemmed |
The Distributive Impact of Taxes and Expenditures in Colombia |
| title_sort |
distributive impact of taxes and expenditures in colombia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/486571583244394872/The-Distributive-Impact-of-Taxes-and-Expenditures-in-Colombia http://hdl.handle.net/10986/33414 |
| _version_ |
1764478711111876608 |