This document discusses how governments can use fiscal policy, such as taxation and spending, to promote social equity and reduce inequality. It provides examples from the Philippines, where the constitution mandates social justice and equity. The government pursues this through programs like providing quality public services for the poor, implementing progressive taxation, and running a conditional cash transfer program.

1. Addressing Inequity
Through Fiscal Policy
Jostine Jeg A. Maucesa

2. Fiscal policy is the use of
government spending and taxation
to influence the economy.
Governments typically use fiscal
policy to promote strong and
sustainable growth and reduce
poverty.

3. • Philippines Government Spending
------Government Spending refers to public
expenditure on goods and services and is a major
component of the gross domestic product (GDP).
Government spending policies like setting up
budget targets, adjusting taxation, increasing
public expenditure and public works are very
effective tools in influencing economic growth.
-----Government spending is sometimes known as
'a charge on public funds' and taxation is
sometimes known as 'a charge on the people'.

4. • Social equity has always been a
concern of the Philippine
government as early as the 1950s
• The Philippine Constitution of 1987
serves as an overall framework
requiring social justice and equity.

5. • In Article XIII, Section 1, it clearly
stipulates that
“The Congress shall give highest
priority to the enactment of measures that
protect and enhance the right of all the
people to human dignity, reduce social,
economic, and political inequalities, and
remove cultural inequities by equitably
diffusing wealth and political power for the
common good”.

6. The social equity goals written into the constitution
in the Philippine Constitution of 1987 can be
translated in a variety of ways by the government.
By providing greater amounts of quality public
services, including social protection for the poor.

7. • In terms of reducing inequality, progressive
taxation is another proven policy tool
employed by the government in order to
finance public services and important
development programs.

8. The Pantawid Pamilya Program (a conditional cash transfer
program) implemented by the DSWD, as well as the
country's current tax reform program, Tax Reform for
Acceleration and Inclusion (TRAIN), the first of five
packages of a comprehensive tax reform program (CRTP)
spearheaded by the Department of Finance (DOF), are
both viewed through the lens of social equity.

9. THANK YOU !