Commitment to Equity Assessment (CEQ) A Diagnostic Framework to Assess Governments' Fiscal Policies Handbook

Fiscal policy can change poverty and inequality substantially or little depending on the government's redistributive effort. We develop a diagnostic framework to assess how aligned fiscal policies are with supporting a minimum living standard and human capital accumulation, as well as reducing inequality. The Commitment to Equity Assessment (CEQ) evaluates efforts based on whether governments: i. collect and allocate enough resources to support a minimum living standard for all; ii. collect and distribute resources equitably; iii. ensure spending is fiscally sustainable and that programs are of good quality and incentive compatible; iv. collect and publish relevant information as well as are subject to independent evaluations. The CEQ relies on inequality, poverty and tax and benefit incidence analyses.