Explaining Low Redistributive Impact in Bolivia

Type Journal Article - Public Finance Review
Title Explaining Low Redistributive Impact in Bolivia
Volume 42
Issue 3
Publication (Day/Month/Year) 2014
Page numbers 326-345
URL http://www.commitmentoequity.org/publications_files/Bolivia/CEQWPNo6 LowRedistImpactBolivia Jan​2013.pdf
Despite an increase of social spending of about 3 percentage points with respect to GDP between 2007 and 2009, fiscal policy in Bolivia had a low redistributive impact. This paper analyzes the fiscal incidence of monetary and in-kind transfers, taxes and subsidies. The obstacles to further redistributive impact are significant leakages to the non-poor and the small size of the transfers. Fiscal incidence on poverty and income inequality could increase with better targeting to the poor, by increasing the size of the transfers and/or by making the existing tax system more progressive.

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