01836cas a2200265 a 4500 AALejournalIMF018215 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484338568 1018-5941 BD-DhAAL BD-DhAAL Gupta, Sanjeev. An Application of Distribution-Neutral Fiscal Policy / Sanjeev Gupta, Sugata Marjit, Sandip Sarkar. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Distribution neutral fiscal policy refers to a structure of taxes and transfers that keep the income distribution unchanged even after positive or negative shocks to an economy. This is referred to as a Strong Pareto Superior (SPS) allocation which improves the standard Pareto criterion by keeping the degree of inequality, but not the absolute level of income intact. We apply this methodology to India to compute SPS tax rates and determine their proximity to actual tax rates. Limited available data on income and expenditure shows that the official policies so far are close to desired benchmark level. Our methodological contribution will be enriched further with more detailed income tax and transfer data. Mode of access: Internet Marjit, Sugata. Sarkar, Sandip. IMF Working Papers; Working Paper ; No. 2018/012 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/012/001.2018.issue-012-en.xml IMF e-Library