## Effectiveness and Equity in Social Spending - The Case of Spain

_IMF Working Papers, January 30, 2020_

## Source details

**Canonical URL:** [Effectiveness and Equity in Social Spending - The Case of Spain](https://www.imf.org/en/publications/wp/issues/2020/01/30/effectiveness-and-equity-in-social-spending-the-case-of-spain-48936)

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## Bibliographic details
- Authors: Svetlana Vtyurina
- Published: January 30, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513526003.001

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### Context and challenges
- Spain faces sustained economic and social disparities across several areas.
- Social spending must respond amid constraints from high public debt and pressures from an aging society.
- The study takes stock of the level and effectiveness of public social expenditure from a cross-country and macroeconomic view, complementing recent targeted spending reviews.

### Main findings
- Social protection spending should aim to improve redistribution by better targeting the most vulnerable.
- Education and active labor market policies need to be more effective to create more equal opportunities and income prospects.
- In some areas, more fiscal resources are needed to achieve objectives.
- Social spending alone cannot reduce inequality; efforts must also be directed toward making the labor market more inclusive.

### Policy recommendations
- Improve targeting of social protection spending to enhance redistribution toward the most vulnerable.
- Strengthen the effectiveness of education policy to expand equal opportunities.
- Enhance active labor market policies to improve income prospects and labor market inclusion.
- Allocate additional fiscal resources where necessary while addressing public debt and demographic pressures.
- Pursue complementary labor-market reforms to increase inclusiveness alongside social spending measures.

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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2020/01/30/effectiveness-and-equity-in-social-spending-the-case-of-spain-48936_