Effectiveness and Equity in Social Spending - The Case of Spain

Download or read book Effectiveness and Equity in Social Spending - The Case of Spain written by Svetlana Vtyurina and published by International Monetary Fund. This book was released on 2020-01-30 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Spain is experiencing sustained economic and social disparities in several areas. Social spending policies have a heightened responsibility to respond but are challenged by high public debt and pressures from an aging society. This study takes stock of the level and effectiveness of public social expenditure from a cross-country and macroeconomic view, complementing recent targeted spending reviews. The results suggest that social protection spending should aim to improve redistribution through better targeting the most vulnerable while more effective education and active labor market policies should aim to create more equal opportunities and income prospects. In some areas more fiscal resources are needed. But social spending alone cannot reduce inequality, and efforts also should be directed toward making the labor market more inclusive.