Assessing the pro-poorness of government fiscal policy in Thailand

Abstract

This paper proposes a methodology to assess the pro-poorness of government fiscal policies in view of bringing marginal reforms. A government policy is said to be pro-poor if it benefits the poor proportionally more than the non-poor. The author first derives the poverty elasticity for the general class of poverty. Then, using the idea of poverty elasticity, she proposes a pro-poor index that can be utilized to assess government expenditure and tax policies. This index may be useful in making the government fiscal system more beneficial towards the poor through marginal reforms. The proposed methodology is applied to Thailand, utilizing the 1998 Socio-Economic Survey.