Evaluating Fiscal Policy Changes

Don’t know about you but I’m still reeling from the Autumn statement that prioritised pints over childcare. The irony of it also being Equal Pay Day* was not lost on us. The Government clearly thinks it’s job done on childcare - all fixed - nothing to see here - but we know that’s a load of old horse manure. Unfortunately, what was announced (ie increases in national living wage*, without an increase in funding to childcare) means providers are in a right old pickle. Their costs will increase but their funding will not. We expect that unless the Government are hiding a few million up their sleeve, only to reveal it in some sort of Ta-Da (!) moment in a few days, then more providers will have to close their doors. What we were offered instead is £9bn in tax cuts. But here’s the kicker, lone mothers stand to gain just £76 a year from the changes to national insurance compared to £248 a year for lone fathers and £437 a year for dual parent households. The number of lone parent households in destitution has tripled since 2019 and as we enter another winter of sky high prices this is only going to continue to rise. We know women disproportionately rely on public services but instead of investing that £9bn back in those services (which lets be honest, could do with a bob or two) , they’ve created a scheme which benefits men significantly more than women, and then piled a load of benefit sanctions on top. And all of this was gifted to us on the day that women effectively stop being paid for the rest of the year due to the gender pay gap. Wuhoo! In summary, it definitely wasn’t a budget I was celebrating in any way whatsoever but what I am celebrating are the incredible Women’s Budget Group - who churned out much of this analysis in like 4.5 seconds. * please note that equal pay day is worse for Global majority women and disabled women * of course we hugely support the increase to the national minimum wage, we are just concerned about the impact this will have on providers

Speech by Mr. Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms – Tuesday, 8 August 2023   Your Excellency, Commander-in-Chief, President Bola Ahmed Tinubu, GCFR; Your Excellency, the Vice President, Senator Kashim Shettima; Other senior Government Officials here present; distinguished dignitaries, and invited guests, good afternoon.   I am glad to witness this day, and I wish to express my gratitude to Mr. President for entrusting me along with other eminent Nigerians with the privilege of serving our nation in this capacity.   I also want to acknowledge the invaluable support from all quarters of our society – the organized private sector, professional bodies, the media, international community, and the public since I was announced as the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.   The task before us is substantial yet pivotal. Our fiscal policies could benefit from better crafting grounded in data and evidence, ensuring coherence and consistency. We need enhanced alignment with the modern economy and better coordination with monetary and other policies.   Many of our existing laws are outdated hence they require comprehensive updates to achieve harmonisation and address multiplicity of taxes, remove the burden on the poor and vulnerable while addressing the concerns of all investors, big or small.   Our tax administration has improved but remains relatively basic, with instances of unregulated collections by untrained officers, particularly at the Local Government level, being widespread.   Our revenue generation falls below even African standards, yet our collection costs are among the highest. This is due not only to multiple taxes but also numerous collection agencies and fragmented revenue reporting procedures.   Public willingness to pay taxes is strained because of a lack of trust in government, both among individuals and businesses, irrespective of size. The burden of tax falls heavily on those who comply, while those who evade often get away with little or no consequences. We need to change this.   The process of resolving tax disputes is protracted and costly, with inadequate mechanisms for many small businesses and vulnerable individuals to seek fair tax resolution, as professional services are often beyond their means.   Although these challenges may seem daunting, they also represent a unique opportunity for us to create a positive impact. We have the chance to revamp our tax policies for a more equitable system, modernize our laws to be adaptable and forward-looking, revitalize our revenue administration, enhance transparency in revenue reporting, and exercise prudence in our spending. ... continues in comments section.

A little late to the party, but here are my two cents. The Union Budget 2025 has ushered in significant reforms for the insurance sector, 100% FDI and key tax regime changes. While these moves open up new opportunities, they also present challenges that the industry must navigate strategically. But what does it means for the sector? The increase in the FDI cap to 100% is expected to attract substantial foreign investments, offering opportunities to deepen market penetration. However, success in this space has historically depended on strong local distribution capabilities, such as bancassurance and agency networks. Here are its possible implications: 🔹 Increased investments can foster innovation and enable insurers to expand their product offerings. 🔹 Mergers and acquisitions may rise, as companies with robust distribution infrastructure further consolidate their market positions. 🔹 Returns on investment in insurance have often been volatile, also requiring long-term patience from investors. Hence, FDI increase to 100% may not necessarily lead to significant inflows immediately. FDI alone can’t drive profitability unless complemented by regulatory stability and clear business models. However, I see a major consumer behaviour shift to likely take place due to the revised tax slabs which eliminates many popular deductions, including those for life insurance premiums, health insurance and home loans. While this simplifies the tax structure, it discourages long-term savings and investments through traditional insurance products. Implications: 🔻 Consumers may reduce investments in savings-oriented policies without tax benefits. 🔻 Insurers will likely accelerate product diversification toward annuities, protection and retirement solutions. 🔻 Tax-free maturity proceeds on certain policies still provide a limited cushion. This change may lead to a shift in consumer behavior, with insurers needing to reimagine their strategies to maintain relevance in the long-term savings space. What are your thoughts on these changes? #insurance #budget2025 #FDI

#DPI : Digital Public Infrastructure can drive a sustainable increase in #revenue collection and build trust in government. -India's adoption of digital public infrastructure has helped reduce the country's income tax return processing time. Trust in government and government effectiveness have a reciprocal relationship. Trust is enhanced when political institutions are strong and governments implement policies and initiatives that are aligned with the public interest and improve people’s daily lives. And governments can be effective only when their citizens trust them enough to comply with laws, thereby creating the space for reforms. Of course, trust in government needs more than just robust digital platforms. But the building of India’s digital platform infrastructure has laid some of the foundations for increasing trust by creating an inclusive platform for citizens to transact digitally and empowering users to have more control over their data. Good digital infrastructure can create trust between any two counterpart actors by introducing tamperproof components for identity, #payments, and #security , which allows citizens and businesses to be certain of the #identity of their counterpart and of the legitimacy of the transaction. This allows the reduction in explicit and implicit costs to citizens when they interact with their government, and for businesses in their transactions with individuals, other businesses, and the government. -Kamya Chandra, Tanushka Vaid, and Pramod Varma's article in  International Monetary Fund 's September 2024 F&D (Finance & Development) Edition

The interim gender Budget is at a high of Rs.3 Lakhs crore, and critical areas like digital literacy & safe cities see budget cuts in 2024-25. About only 5% of the budget allotted to gender gap areas requiring immediate priority: ◼️ social protection, ◼️ prevention of domestic violence, ◼️ skill training, ◼️ safe and inclusive public transport, ◼️ digital literacy, ◼️ support for unpaid care and domestic work. India’s gender Budget, 80%, has been concentrated among 5 ministries & departments - namely rural development, drinking water and sanitation, housing and urban affairs, health and family welfare, and education. ❓If India is to lead with “Nari Shakti”, what are some of the changes we seek for innovation and progress of women and increased participation in the labour force - do share your thoughts https://lnkd.in/gB3AGFyA

Launched a report titled 'An Analytical Approach for Assessing Gender Budgeting in India' — a first of its kind methodology that incorporates the Input-Output-Outcome Framework to measure the impact of Gender Budgeting. This report advocates for a framework tailored to India's needs, stressing the imperative for transparent evaluations to comprehensively gauge outcomes. It underscores the limitations of conventional indices from international organizations, demonstrating their failure to capture ground realities. India is poised to lead by example, establishing a robust framework that sets a global standard for others to emulate. This study, conducted under the expert guidance of Shamika Ravi in collaboration with FICCI and with support from Bill & Melinda Gates Foundation & Ministry of Women & Child Development, represents a significant stride toward evaluating gender budgeting within the Indian context.

𝗧𝗵𝗲 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮𝗻 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁’𝘀 $𝟱𝟳𝟯.𝟯 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝗻 𝘄𝗼𝗺𝗲𝗻’𝘀 𝗵𝗲𝗮𝗹𝘁𝗵 It is encouraging to witness such announcements and advancements in women's sexual and reproductive health, especially during these challenging times of global political uncertainty and growing backlash against women's rights worldwide. The package intends to deliver "more choice, lower costs, and better health care for women". Key components of the package include: - New oral contraceptive pills and menopausal hormone therapies listed on the pharmaceutical benefits scheme (PBS) - More funding for endometriosis and pelvic pain clinics, including 11 new locations - More Medicare support for women experiencing menopause, including, funding to train health professionals, the first-ever clinical guidelines, and a national awareness campaign - More Medicare support for long-term contraceptives (IUDs and implants), reducing out-of-pocket costs by up to $400 for around 300,000 women per year - Contraceptives and treatment for uncomplicated UTIs directly from pharmacies Some measures will take effect almost immediately, others will be implemented following the re-election. #womenshealth #SRHR #menopause #funding #contraception #Australia

Indian insurance sector is entering uncharted waters with the Finance Ministry’s draft proposal to expand its scope. By allowing insurers to diversify into areas like guarantees, managing repossessed properties, and setting up welfare funds, this proposal promises growth but raises crucial questions. Diversification sounds promising on paper, but in practice, it risks diluting the core focus of insurers. Are we prepared for the operational complexity this will bring? One glaring omission in the draft is the removal of a provision from the 2022 Insurance Amendment Bill that allowed insurers to distribute financial products like mutual funds. This might be a missed opportunity. Insurers have a vast distribution network and trusted relationships that could have revolutionized financial product outreach. Without this provision, we might lose the chance to create a financial ecosystem where insurers could rival banks in cross selling. Probably solution lies in revisiting this idea and defining guardrails to ensure customer centric cross sector synergies. Another reform under consideration is enabling agents to represent multiple insurers. While this promises to enhance customer choice, it also risks creating market chaos. Agents, juggling multiple offerings, might inadvertently confuse customers or focus on higher commissions over genuine advice. Solution? Regulatory framework mandating transparency in agent commissions and training to prioritize customer needs could balance innovation with accountability. Proposal to increase FDI in insurance to 100% is bold but requires enough safeguards to be built in . While it could attract global expertise and capital, it raises concerns about domestic control in a sector tied to national security and social welfare. Instead of a blanket FDI increase, why not cap foreign ownership in specific areas, such as health insurance or rural insurance, to safeguard domestic interests? Draft’s proposal to lower capital requirements for niche insurers to ₹50 crore and reduce net owned fund requirements for reinsurers could foster innovation in underserved markets. However, such measures must ensure solvency standards remain robust. A rush to relax regulations without safeguards could jeopardize consumer trust. These reforms could redefine the insurance industry, but only if we tread carefully. Without strategic implementation and a collaborative approach, these might well be superficial changes. Real challenge lies in balancing growth with governance, innovation with inclusivity, and competition with customer protection. Refer attached article for details ⬇️. #InsuranceReforms #Insurtech #PolicyChallenges #FDI #FinancialInclusion #CustomerProtection #IndustryTransformation #LinkedIn

Honoured to attend a ceremony in Tokyo, with Prime Minister Fumio Kishida, to hand over our report to the G7. It was an honour to serve on the G7 Gender Equality Advisory Council in 2023, and this in my capacity as Chair of European Women on Boards (EWOB). I led the topic of “Economic Empowerment of Women”, together with 2 fabulous ladies, Caroline Farberger and Anda Sapardan. We formulated recommendations to the G7 to: 1. Support women’s full participation in the economy, addressing the sociocultural barriers and double shift women still face. 2. Install a gender lens for public money: in budgets, audits and policy making. 3. Overcome gender bias in private capital allocation, and ensure equal opportunities for women-led fund managers and companies. 4. Increase the number of women in financial decision making, both in politics and companies. Read more: https://lnkd.in/eq_gfGrN The full report is available at:  https://lnkd.in/eCUhCwrN