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

May 17, 2013

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Antonio David, and Martin Petri. Inclusive Growth and the Incidence of Fiscal Policy in Mauritius: Much Progress, But More Could be Done, (USA: International Monetary Fund, 2013) accessed September 18, 2024

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.

Subject: Expenditure, Income distribution, Income inequality, Income tax systems, National accounts, Personal income, Taxes

Keywords: Africa, Central America, Employment income, Expenditure survey, Household consumption measure, Incidence in Mauritius, Incidence of Public Expenditures, Incidence of Taxes, Inclusive Growth, Income, Income distribution, Income inequality, Income tax, Income tax systems, Income taxes in Mauritius, Independence Mauritius, Mauritius, Personal income, Physical capital, VAT, VAT payment, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/116
Stock No:

WPIEA2013116
ISBN:

9781484323335
ISSN:

1018-5941

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