Taxation and Fiscal Policy. Social and Economic Planning Council Union of South Africa

AbstractThis paper examines the redistributive impact of fiscal policy for Brazil, Chile, Colombia, Indonesia, Mexico, Peru and South Africa using comparable fiscal incidence analysis with data from around 2010. The largest redistributive effect is in South Africa and the smallest in Indonesia. Success in fiscal redistribution is driven primarily by redistributive effort (share of social spending to GDP in each country) and the extent to which transfers/subsidies are targeted to the poor and direct taxes targeted to the rich. While fiscal policy always reduces inequality, this is not the case with poverty. When pensions are not considered a transfer, fiscal policy increases poverty in Brazil (over and above market income poverty) due to high consumption taxes on basic goods. Total spending on education is pro-poor except for Indonesia, where it is neutral in absolute terms. Health spending is pro-poor in Brazil, Chile and South Africa, roughly neutral in absolute terms in Mexico, and not pro-poor in Indonesia and Peru.

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Fiscal policy, employment, and output in South Africa: An open economy analysis

Journal of Economic & Financial Studies ◽

10.18533/jefs.v4i3.238 ◽

2016 ◽

Vol 4 (03) ◽

pp. 11 ◽

Cited By ~ 1

Author(s):

Mthokozisi Mlilo ◽

Umakrishnan Kollamparambi

Keyword(s):

South Africa ◽

Fiscal Policy ◽

Open Economy ◽

Economy Analysis

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Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v10i2.2232 ◽

2018 ◽

Vol 10 (2) ◽

pp. 231

Author(s):

Tshembhani Mackson HLONGWANE ◽

Itumeleng Pleasure MONGALE ◽

Lavisa TALA

Keyword(s):

Economic Growth ◽

South Africa ◽

Fiscal Policy ◽

Negative Impact ◽

National Development ◽

Real Gdp ◽

Long Run ◽

Fixed Capital Formation ◽

The Government ◽

The Impact

Fiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.

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Macroeconomic effects of fiscal policy changes: A case of South Africa

Economic Modelling ◽

10.1016/j.econmod.2013.08.039 ◽

2013 ◽

Vol 35 ◽

pp. 771-785 ◽

Cited By ~ 5

Author(s):

Olusegun Ayodele Akanbi

Keyword(s):

South Africa ◽

Fiscal Policy ◽

Policy Changes ◽

Macroeconomic Effects

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A Partial General Equilibrium Analysis Of Fiscal Policy Injection On Poverty And Inequality In South Africa

10.21203/rs.2.22598/v1 ◽

2020 ◽

Author(s):

Kambale Kavese ◽

Andrew Phiri

Keyword(s):

Economic Growth ◽

South Africa ◽

Fiscal Policy ◽

General Equilibrium ◽

Rural Areas ◽

Computable General Equilibrium ◽

Urban Areas ◽

Policy Implications ◽

Equilibrium Analysis ◽

Poor Households

Abstract This study employs a partial general equilibrium approach calibrated on the Social Accounting Matrix (SAM) and a contemporaneous dynamic computable general equilibrium (CGE) model to assess the effect of expansionary fiscal policy on economic growth, income inequality, poverty, employment and inequality reduction in South Africa. The simulation results reveal that expansionary fiscal policy i) benefits rich ‘white’ households the most and poor ‘coloured’ households the least ii) improves adult employment more than youth employment iii) improves employment in urban areas as proposed to employment in rural areas iv) has a very small effect on improving economic growth and reducing the Gini coefficient v) benefits ‘well-off’ households more than it does ‘poor’ households vi) promotes ‘low-skilled’ employment more than it does for ‘high-skilled’ labourers. Associated policy implications based on our findings are also discussed.

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