Are Budget Neutral Income Floors Fiscally Viable in Sub-Saharan Africa?
Annual Report
Open
- File Details
- Size: 25MB
- Creator / Author: Joan Addedis
- Resource Type: Africa Capacity Report
- # Download: 254
- Access: Open to Download
January, 2021
Basic Information
Creator / Author
Nora Lustig, Jon Jellema, and Valentina Martinez Pabon
Source / Publisher
Center for Global Development
Resource Type
Number of Pages
38
Geographic & Audience Details
Classification & Domains
Subject
universal basic incomes, fiscal policy, fiscal incidence, poverty, fiscal impoverishment, taxes, sub-Saharan Africa
Abstract
Using microsimulations, we assess whether budget neutral universal income floors are fiscally viable in twelve SSA countries. We consider three universal basic income (UBI) scenarios of decreasing levels of generosity: poverty line, average poverty gap, and current spending on transfers and subsidies per person (spending neutral). The viability of the policies is assessed by comparing the results on poverty and average tax rates obtained from the simulated scenarios with those in the current system (baseline). We find that poverty line and poverty gap UBI programs would not be viable. Spending neutral UBI programs could potentially be viable in Botswana, Ghana and Zambia. If resources are targeted to the poor, a poverty line scenario is viable in Botswana, Ghana, Namibia, and South Africa.
Keywords
Africa, Sustainable Development Finance, Poverty and Inequality, Commitment to Equity
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