Pursuing Sustainable Development Goals
Dimensions of Income Inequality and Evaluation of the Redistributive Role of Fiscal Policies in Terms of Functional Public Expenditures in Türki̇ye
Aysel ArıkboğaGoal 10 of the Sustainable Development Goals (SDGs), which is composed of ten targets and relevant indicators, is about reducing inequality both within and among countries. Concerns about inequality have increased in the early 21st century, particularly with the severe impacts of the 2007-2009 Global Crisis and the COVID-19 Crisis. As a result of the devastating effects of these two crises, which emerged almost ten years apart, concerns have been raised about the success of the SDGs as the target year 2030 approaches. In this chapter, the state of income inequality in Türkiye will be discussed, with an emphasis on the role of fiscal policies -specifically, public expenditures- on redistributive issues. Target 4 of Goal 10 is about embracing policies, especially fiscal, wage and social protection policies, in the pursuit of achieving greater equality. In this context, the chapter will initially provide a brief outline of the process towards the SDGs and the goal of reducing inequalities. Following the analysis of the main inequality indicators in Türkiye, disaggregated public expenditures via the Classification of the Functions of Government (COFOG) will be evaluated. The development goals cannot be met unless the required improvements in certain indicators, such as education, health, and material standard of living, are achieved. Therefore, an analysis of functional public expenditures may provide insights for evaluating the current problems and developing relevant policy proposals. Briefly, the chapter will focus on the income distribution indicators in Türkiye through an analysis of the role of fiscal policies in general and public expenditures in particular.
