Redistributing income through the budget in Latin America

V. Tanzi

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Economic and Fiscal Studies Income, Poverty, and Inequality Fiscal Policies and Political Economy

Abstract

Bringing about a distribution of income that reflects the prevailing views of society has been one of the traditional objectives of public economic policy. There are obviously many alternative ways in which the government of a country can bring about a more even distribution of income. This paper, however, does not deal with these options but rather, concentrates on the changes which can be brought about after gross income has already been generated. In other words, it emphasises the role of budgetary policy on income redistribution. Or, putting it differently, it discusses the role that taxes and public expenditures are supposed to have on redistributing income. JEL: E24, H61, H20, H50

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1990The Impact of Macroeconomic Policies on Income Distribution: An Empirical Study of the Philippines 1975Fiscal Incidence Studies in Developing Countries: Survey and Critique (Etude sur l'incidence de la politique budgetaire dans les pays en voie de developpement: examen analytique et critique) (Estudios de incidencia fiscal en los paises en desarrollo: Investigacion y critica)

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