Inequality can be addressed through a combination of social service provision, social
transfers and taxation. Looking at the past two decades, this paper examines the extent to which
inequality has been affected by changes in national tax systems and government expenditure on
social transfers. Using secondary data, this paper discusses the trends in the composition and
levels of social transfers and taxes, and explores how these trends relate to income inequality. It
also looks into the extent to which taxes and social transfers are effective in redistributing
income. And finally it shows how different government policy frameworks have been able to
limit growth in income inequality and at the same time foster economic growth and job creation.