Title: How Effectively Does the Fiscal System in Ukraine Address Poverty and Inequality? : A Commitment to Equity (CEQ) Analysis
Abstract: Are taxes in Ukraine progressive? Do social protection programs in Ukraine help reduce poverty and inequality? Which programs are more effective in alleviating poverty, per hryvnia allocated to them? These are the questions that a recent Commitment to Equity (CEQ) analysis for Ukraine aims to address. This brief lays out the main aspects of the CEQ approach, and the main results. The analysis finds, for instance, that household at the bottom of the income distribution derive most of their final income from transfers of various types. The tax benefit system overall is quite progressive and contributes significantly to the reduction of poverty and inequality. However, not all programs are equally efficient in reducing poverty and inequality. Direct transfers, in particular means-tested poverty benefits, as well as child benefits have larger poverty and inequality impact per hryvnia allocated to them, then some of the indirect subsides. Efficiency of HUS depends on the choice of the poverty threshold. There is room for improvement in program design.
Publication Year: 2019
Publication Date: 2019-03-01
Language: en
Type: article
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