Poverty and Social Protection in Bulgaria

Jean-Jacques Hallaert

No 2020/147, IMF Working Papers from International Monetary Fund

Abstract: Absolute poverty has dropped markedly in Bulgaria but income inequality has increased substantially in the aftermath of the GFC. This increase is due to a rise in market income inequality that was compounded by a reduction in fiscal redistribution. The redistributive role of direct taxation has declined with the introduction of a flat tax and social spending is relatively low and decreasing (as a share of GDP), is concentrated on a few social risks, and experienced a decline in its redistributive efficiency. The COVID-19 crisis is likely to deepen income inequality, increasing the room for redistributive policies.

Keywords: WP; share ratio; EU average; EU spending; inequality in Bulgaria; test level; cash income; Income inequality; Income; Income distribution; Fiscal redistribution; Europe; Eastern Europe; Inequality; Poverty; Social Protection; Bulgaria; European Union (search for similar items in EconPapers)
Pages: 34
Date: 2020-07-31
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Citations: View citations in EconPapers (2)

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