Inclusive Growth and the Incidence of Fiscal Policy in Mauritius
AbstractUsing data from three household surveys, we review whether growth in Mauritius was inclusive and discuss the incidence of public expenditures and taxes. Generally, Mauritius enjoys an even income distribution and low rates of poverty. Nevertheless, over the 2000s, despite overall progress, the benefits of growth appear to have become more skewed. Employment income is the main contributor to inequality in Mauritius. Social protection expenditures reduce poverty and inequality, but could be better targeted, particularly for pensions. Income taxes are progressive, though given their small relative weight they have a negligible impact on income distribution. The VAT appears relatively progressive compared to other developing countries, although its impact on the overall distribution is also small. With better targeting of the sizable social spending, significant further progress in poverty alleviation could be achieved.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 13/116.
Date of creation: 17 May 2013
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This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-09-26 (Africa)
- NEP-ALL-2013-09-26 (All new papers)
- NEP-PBE-2013-09-26 (Public Economics)
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