Fiscal Policy to improve equity
Política fiscal para mejorar la equidad

What do we do?

Latin America and the Caribbean is one of the most unequal regions in terms of income, caused in part by the low redistributive impact of social expenditures and taxes.We support countries in Latin America and the Caribbean develop and implement fiscal policy that plays a key role in reducing poverty and income inequality.

Action areas

  • Improve the technical and allocative efficiency of spending and collection to improve equity without harming growth and at the lowest possible efficiency cost
  • Generate evidence-based tools to analyze and compare the cost of public policies on growth, unemployment, poverty, vulnerability, and equity
  • Diagnose in each country the incidence of the different components of spending and the different taxes on equity and propose measures to improve their incidence on equity
  • Diagnose how certain changes in transfers and/or taxes and subsidies affect poverty and inequality using micro simulations in each country
  • Based on this evidence, strengthen fiscal institutions to generate expenses and taxes that provide greater efficiency and equity
  • Implement a fiscal ecosystem, an integrated and intelligent data system in the hands of different government offices to improve the efficiency and the equity of public spending, collection, detect informality and poverty, and target energy subsidies and other transfers, as well as detect leakages to the non-poor