Commitment to Equity Assessment (CEQ). A diagnostic framework to assess governments’ fiscal policies. Handbook

Fiscal policy can change poverty and inequality substantially or slightly 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 with 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 that 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. CEQ relies on inequality, poverty and tax and benefit incidence analyses.