Fiscal Schemes for Inclusive Development (FSID) : Evaluating Tax and Benefits in Latin America

Since the end of the debt crisis of the 1980s, Latin American governments have reduced deficits, lowered fiscal volatility, increased public expenditure and pioneered fiscal innovations. Latin American economies differ from industrial economies in the way public revenues are structured, how decentralized the fiscal system is, and the public services citizens receive for their taxes. Latin American fiscal performance is still a long way from closing the gap with industrialized economies, and important problems remain. For example, revenue generation relies on non-tax sources, which tend to be volatile. And, the tax structure is heavily based on regressive indirect taxes while public spending plays a limited role in redistribution.

This project aims to help governments in Brazil, Chile, Guatemala, Mexico and Uruguay deliver better and fairer public goods and services by providing them with a tax benefit micro-simulation platform called LATINMOD. The platform will be capable of simulating most proposed reforms in personal taxes and social benefits, and the mechanics of redistribution policies and how they interact with one another. By using micro data from representative surveys, LATINMOD will be able to characterize the population in aggregate as well as by age, sex, economic status, family composition, region and income level to identify those who win and lose under a given reform. It is expected that this will contribute toward more equitable, efficient and transparent fiscal and social protection systems, and help consolidate democratic regimes in the region.

Project ID

105400

Project status

Closed

Start Date

Saturday, August 1, 2009

End Date

Friday, August 10, 2012

Duration

24 months

IDRC Officer

Robino, Carolina

Total funding

CA$ 502,800

Countries

Brazil, South America, Chile, Guatemala, North and Central America, Mexico, Uruguay

Program

Employment and Growth

Project Leader

Wilson Romero

Institution

Universidad Rafael Landívar

Institution Country

Guatemala

Institution Website

http://www.url.edu.gt/idies