The Combined Incidence of Taxes and Public Expenditures in the Philippines PDF Download

Author: Shantayanan Devarajan
Publisher: World Bank Publications
ISBN:
Category : Expenditures, Public
Languages : en
Pages : 32

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Author: Shantayanan Devarajan
Publisher:
ISBN:
Category :
Languages : en
Pages :

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November 1995 In the Philippines, the combined effect of taxation and spending policies is progressive, because the incidence pattern of spending is progressive while that of taxation is neutral. Indirect taxes, the main source of government revenue, are only slightly regressive. Although the poor consume taxed goods such as energy directly, the rich consume them indirectly by purchasing goods whose production requires energy and other taxed goods. Incidence studies of fiscal policy in developing countries typically examine either the distribution of tax burdens or the incidence of public expenditures. But the central issue for policymakers is the combined or net incidence of fiscal activities. Even if a tax is regressive, the impact of increasing it may not be, if the revenue raised is spent in a progressive manner. But even if the beneficiaries of public spending are the poor, the net effect may not be pro-poor, if the spending is financed by a highly regressive tax. One reason that combined incidence studies are so rare: they require detailed data on both taxation and public spending. Most analysts consider themselves lucky if they have data on either. Devarajan and Hossain show that the net incidence of fiscal policy in a country with average data -- the Philippines -- can be estimated using a variety of data sources and tools, using simplifying assumptions. For 20 years, the Philippine economy has experienced a series of balance of payments crises triggered by fiscal crises. It has had an unsatisfactory record of poverty alleviation. As the government tries to maintain fiscal discipline by raising taxes and cutting spending, how will poverty be affected? Devarajan and Hossain examine net fiscal incidence to find out. Their findings: * The incidence pattern of taxes is basically neutral. Contrary to expectations, indirect taxes are only slightly regressive. The poor consume taxed goods such as energy directly, but the rich consume them indirectly by purchasing goods the production of which requires energy and other taxed goods. * It is the pattern of expenditures that drives the combined incidence, which is progressive. This paper -- a product of the Public Economics Division, Policy Research Department -- is a revised version of Chapter 15 of the World Bank report, The Philippines: An Opening for Sustained Growth.

Author: Edita A. Tan
Publisher:
ISBN:
Category : Finance, Public
Languages : en
Pages : 134

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Working paper on the income redistribution effects of taxation and public expenditure in the Philippines - constitutes part of a WEP research project on income distribution and employment, and includes survey data on the extent to which different income groups make use of various social services, etc. References and statistical tables.

Author: Kevin Fletcher
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 20

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Public sector revenue has declined markedly in the Philippines over the past seven years. Most observers of the Philippine economy agree that rebuilding public sector revenue will be critical to reducing deficits and ensuring public sector debt sustainability. This paper reviews several of the main possibilities for raising public sector revenue, including increases in excise, VAT, and electricity rates. It argues that most of these proposals would raise revenue in a relatively efficient manner. Using household-level expenditure data, it also finds that most of these measures would be progressive, especially if they allow the government to avoid cuts in pro-poor spending.

Author: Amelia B. Abello
Publisher:
ISBN:
Category : Philippines
Languages : en
Pages : 90

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Author: Ke-young Chu
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 70

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Author: Jeffrey Sachs
Publisher:
ISBN: 9780226733357
Category :
Languages : en
Pages : 821

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Author: Sawitree S. Asawanuchit
Publisher: International Monetary Fund
ISBN: 1451875436
Category : Business & Economics
Languages : en
Pages : 49

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This paper provides a primer on benefit incidence analysis (BIA) for macroeconomists and a new data set on the benefit incidence of education and health spending covering 56 countries over 1960-2000, representing a significant improvement in quality and coverage over existing compilations. The paper demonstrates the usefulness of BIA in two dimensions. First, the paper finds, among other things, that overall education and health spending are poorly targeted; benefits from primary education and primary health care go disproportionately to the middle class, particularly in sub-Saharan Africa, HIPCs and transition economies; but targeting has improved in the 1990s. Second, simple measures of association show that countries with a more propoor incidence of education and health spending tend to have better education and health outcomes, good governance, high per capita income, and wider accessibility to information. The paper explores policy implications of these findings.

Author: Jonathan Isham
Publisher: World Bank Publications
ISBN:
Category : Developing countries
Languages : en
Pages : 44

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Author: Roland Egerer
Publisher: World Bank Publications
ISBN:
Category : Capital market
Languages : en
Pages : 56

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