Political Budget Cycles in Autocracies: The Role of Religious Seasons and Political Collective Action

Abstract

AbstractFor autocrats ruling over religious populations as in many Muslim majority countries, threats of mass collective action and religious mobilization are risky to ignore, being potentially detrimental to authoritarian survival. Religious seasons, such as Ramadan, could raise the seriousness of such threats. Accordingly, incumbents might adopt expansionary fiscal policies to avoid the escalation of political discontent at these times. Focusing on Egypt's fiscal policy between 2006 and 2019, I find that although the religious season of Ramadan is associated with modest increases in government expenditure and welfare spending, this relationship is dependent on the level of political threats facing the regime. Government spending is higher in Ramadan's season when it is preceded by more episodes of anti-regime collective action. This evidence suggests that the interaction between the religious and political contexts could generate political budget cycles outside electoral seasons.