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

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  • Mr. Antonio David
  • Mr. Martin Petri

Abstract

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.

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  • Mr. Antonio David & Mr. Martin Petri, 2013. "Inclusive Growth and the Incidence of Fiscal Policy in Mauritius: Much Progress, But More Could be Done," IMF Working Papers 2013/116, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/116
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    Cited by:

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    2. Nkrumah, Kwabena Meneabe, 2013. "Effect of Fiscal Policy Shocks in Brazil," MPRA Paper 72534, University Library of Munich, Germany.
    3. Katsiaryna Svirydzenka & Martin Petri, 2017. "Mauritius: The Drivers of Growth – Can the Past Be Extended?," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(8), pages 54-83, October.
    4. Mauricio Soto & Mr. Vimal V Thakoor & Mr. Martin Petri, 2015. "Pension Reforms in Mauritius: Fair and Fast—Balancing Social Protection and Fiscal Sustainability," IMF Working Papers 2015/126, International Monetary Fund.
    5. Roshini Brizmohun & Diana Alessandrini & Valentina Hartarska, 2021. "Gender wage gap in small islands: Effect of a policy framework in Mauritius," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2207-2229, November.
    6. International Monetary Fund, 2013. "Mauritius: 2013 Article IV Consultation," IMF Staff Country Reports 2013/097, International Monetary Fund.
    7. Sanju Naraidoo & Sanjeev K. Sobhee, 2020. "An Investigation into the Intertemporal Spending Path of Local Government in Mauritius," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(4), pages 432-453, November.
    8. Jude Okechukwu Chukwu, 2020. "New Estimates of Non-inclusiveness of Growth Using Two Nigerian Household Survey Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 191-204, November.
    9. Nkrumah, Kwabena Meneabe, 2013. "Effect of Fiscal Policy Shocks in Brazil," MPRA Paper 85432, University Library of Munich, Germany.

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