Redistributing income through the budget in Latin America



Bringing about a distribution of income that reflects the prevailing views of society has been one of the traditional objectives of public economic policy. There are obviously many alternative ways in which the government of a country can bring about a more even distribution of income. This paper, however, does not deal with these options but rather, concentrates on the changes which can be brought about after gross income has already been generated. In other words, it emphasises the role of budgetary policy on income redistribution. Or, putting it differently, it discusses the role that taxes and public expenditures are supposed to have on redistributing income.


JEL: E24, H61, H20, H50


Distribution of income, budgetary policy, taxes, public expenditures, redistribution

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ISSN 2037-3643

Reg. Tribunale di Roma n.377/2009 del 19/11/2009