“One premise of redistribution is that money should be distributed to benefit
the poorer members of society, and that the rich have an obligation to assist
the poor, thus creating a more financially egalitarian society” (Mayank Singhal, 2011)
Ke-young Chu, Hamid Davoodi and Sanjeev Gupta (2000) studied the incomedistribution in developing countries which impacted by tax and government
social spending, main results surprisingly show that on average, income inequality
in developing countries is lower than in industrial countries. However, many
developing countries have experienced an increase in income inequality based
on pre and post-tax income measurement. The developed countries improve the
distribution effectively by taxes and government specific budget while the developing
countries do not have adequate redistributive program to achieve a post-tax, post
transfer income equality. Furthermore, in general, Education, health and transfer
program in developing countries had a progressive incidence but not well targeted.