The impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysis

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dc.creatorMaskaeva, Asiya I.
dc.creatorMmasa, Joel J.
dc.creatorLema, Nicodemas C.
dc.creatorMgeni, Msafiri E.
dc.date2020-03-24T11:16:31Z
dc.date2020-03-24T11:16:31Z
dc.date2019
dc.date.accessioned2021-03-27T10:46:14Z
dc.date.available2021-03-27T10:46:14Z
dc.descriptionFull Text Report. Also available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405460
dc.descriptionThe Tanzanian government has established a goal to transform the country into a middle-income and semi-industrialized state by 2025. To promote this transformation, the government exempted the Value Added Tax on capital commodities in FY 2017-2018 as a way to promote utilization of these commodities by manufacturing industries and generate growth, employment, and increased incomes. This study analyzes the impact of a reduction in Value Added Tax on capital commodities (electricity, vehicles, machinery, and equipment) under two different closure rules: (1) fixed governmental expenditures and flexible governmental savings (2) flexible governmental expenditures and fixed governmental savings. Under the first regime, government savings declined and industries that depended heavily on government investments suffered. In the second, output increased for all industrial sectors, leading to a decrease in average unemployment. Real consumption increased for all but the richest household categories.
dc.identifierMaskaeva, A., Mmasa, J., Lema, N., & Msafiri, M. (2019). The impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysis. Partnership for Economic Policy Working Paper (2019-07).
dc.identifierhttp://hdl.handle.net/20.500.12661/2324
dc.identifier.urihttp://hdl.handle.net/20.500.12661/2324
dc.languageen
dc.publisherSSRN
dc.subjectFiscal Policy
dc.subjectGovernment budget
dc.subjectHousehold income
dc.subjectCGE modelling
dc.subjectSocial accounting matrix
dc.subjectIncome distribution
dc.subjectValue Added Tax
dc.subjectVAT
dc.subjectTax
dc.subjectRevenue
dc.subjectCapital commodity
dc.subjectGovernment expenditures
dc.titleThe impact of fiscal policy on income distribution in Tanzania: A computable general equilibrium analysis
dc.typeReport

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