Impact of Fiscal Policy on Poverty and Inequality in Uganda : Fiscal Incidence Analysis Using the UNHS 2016/17
This study analyzes the incidence of public revenues (tax collection) and expenditures (including direct and indirect transfers, indirect subsidies, and in-kind transfers) on the level of poverty and inequality in Uganda, using the internationally...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/647301572456138632/Impact-of-Fiscal-Policy-on-Poverty-and-Inequality-in-Uganda-Fiscal-Incidence-Analysis-Using-the-UNHS-2016-17 http://hdl.handle.net/10986/32660 |
| Summary: | This study analyzes the incidence of
public revenues (tax collection) and expenditures (including
direct and indirect transfers, indirect subsidies, and
in-kind transfers) on the level of poverty and inequality in
Uganda, using the internationally recognized methodology
developed by the Commitment to Equity institute. The results
show that Uganda's fiscal policy is moderately
equalizing and lowers the Gini coefficient by 3.2 points.
The personal income tax, followed by education in-kind
transfers, are the biggest contributors to reducing
inequality. Although equalizing, fiscal policy is
poverty-inducing in Uganda. Direct transfers are pro-poor
in distribution but are not large enough to counteract the
purchasing power reductions from indirect taxes; the poverty
headcount ratio increases by 2.3 percentage points. Going
forward, the combination of raising additional revenue by
broadening the personal income tax base and removing
valued-added tax exemptions while using the additional
resources to increase the size and coverage of pro-poor
direct transfers programs may alleviate poverty and reduce inequality. |
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