Fiscal Space for Social Protection and the SDGs: Options to Expand Social Investments in 187 Countries
82 Pages Posted: 15 May 2015 Last revised: 12 Jun 2017
Date Written: May 7, 2015
It is often argued that social protection is not affordable or that government expenditure cuts are inevitable during adjustment periods. But there are alternatives, even in the poorest countries. This working paper offers eight options that should be explored to expand fiscal space and generate resources to achieve the Sustainable Development Goals (SDGs), realize human rights and invest in women and children. These include: (i) re-allocating public expenditures; (ii) increasing tax revenues; (iii) expanding social security coverage and contributory revenues; (iv) lobbying for aid and transfers; (v) eliminating illicit financial flows; (vi) using fiscal and foreign exchange reserves; (vii) borrowing or restructuring existing debt and; (viii) adopting a more accommodative macroeconomic framework.
Keywords: social protection, fiscal space, resource mobilization, public expenditures, tax, social security contributions, foreign reserves, development assistance, illicit financial flows, government debt, expansionary fiscal and monetary policy, development policy, social spending, social investments, equit
JEL Classification: F35, H12, H2, H5, H6, H62, H63, I38, O2, O23
Suggested Citation: Suggested Citation