Georgia can now test how its tax and spending policies affect poverty, before they happen
What happened
The World Bank has released a new software tool that lets Georgia's government simulate the impact of its tax and spending policies on poverty and inequality. This means policymakers can now test different fiscal reforms to see who benefits and who loses, before implementing them.
Why it matters
For years, governments often had to guess how new taxes or spending cuts would affect different income groups. This tool changes that. It allows Georgia to run 'what-if' scenarios, showing the real-world impact on households and poverty levels. This makes it harder for politicians to claim a policy helps the poor if the numbers show it doesn't.
The signal
Watch for official reports from the Georgian government that cite specific simulations from this tool when proposing or defending new fiscal policies.