Inclusive Growth and the Incidence of Fiscal Policy in Mauritius — Much Progress, But More Could be Done

 
Author/Editor: David, Antonio ; Petri, Martin
 
Publication Date: May 17, 2013
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Using 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.
 
Series: Working Paper No. 13/116
Subject(s): Economic growth | Mauritius | Fiscal policy | Government expenditures | Tax revenues | Tax structures | Income distribution | Income taxes

 
English
Publication Date: May 17, 2013
ISBN/ISSN: 9781484323335/2227-8885 Format: Paper
Stock No: WPIEA2013116 Pages: 28
Price:
US$18.00 (Academic Rate:
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