Strengthening the Incidence of Fiscal Policy on Social Equality in Mexico

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The objective of this technical cooperation is to support the Ministry of Finance and Public Credit (SHCP) to enhance the redistributive impact of fiscal policy, by improving the quality and effectiveness of public spending as well as tax policy and administration. In terms of public spending, the aim is to identify improvements in the allocation of public spending, in order to achieve greater targeting in low-income sectors and regions. It will also seek to identify improvements related to the quality and effectiveness of social spending. In terms of tax policy and administration, we seek to identify areas of opportunity to increase the redistributive impact of taxation. For this, it will be consider alternatives for improving the design of taxation on income and wealth, as well as taxation on the collaborative economy.