Addressing Inequality in Budgeting
Lessons from Recent Country Experience
In many countries, public expenditure, including transfers, plays a major role in reducing income inequality. The report reviews the various ways that budgeting can be used to this end. A first includes taking a broad approach to results-based budgeting, taking social and distributional goals into consideration. A second relies on integrating distributional impact analysis directly into the budget process. The report discusses the concrete experience of eight OECD countries in this area, analysing how they are integrating distributional impact assessment in spending and budgeting decisions. Finally, it discusses the tools, frameworks and data that are needed to take distributional considerations into account as part of evidence-informed policy making.
Using budgeting to address inequality: Overview of findings
This chapter provides an overview of the how the eight countries included in this project use results-based budgeting frameworks to address issues of inequality. It first highlights the rationale for addressing inequality in spending decisions, before looking at what tools and methods are available for countries to do so. It then discusses the practices currently in place in the countries, how they are set up in the countries’ budgeting frameworks, and how they are supported at the technical level, through the range of models and data tools that are utilised in policy practice.
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