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Newsletter: From Evidence to Action

South Africa economic update: Focus on fiscal policy and redistribution in an unequal society

Type :
Research reports & papers
Author :
World Bank Group (WBG)
Published :
Link :

Report explores whether fiscal policy reduces poverty and inequality. It offers an analysis which is based upon the innovative use of fiscal and household survey data to provide evidence on two main questions; how do taxes and spending in South Africa redistribute income between the rich and the poor, and what is the impact of taxes and spending on poverty and inequality? Against the backdrop of a high fiscal deficit and rising debt burden, it is essential that the government uses its existing resources effectively in the fight against poverty and inequality, according to the report.