Allocation Of Public Expenditure Research Articles

Social Decision-Making Analysis: A General Approach to Inform Decisions on Resources in the Public Sector

ObjectivesPublic expenditure aims to achieve social objectives by improving a range of socially valuable attributes of benefit (arguments in a social welfare function). Public expenditure is typically allocated to public sector budgets, where budget holders are tasked with meeting a subset of social objectives. MethodsDecision makers require an evidence-based assessment of whether a proposed investment is likely to be worthwhile given existing levels of public expenditure. However, others also require some assessment of whether the overall level and allocation of public expenditure are appropriate. This article proposes a more general theoretical framework for economic evaluation that addresses both these questions. ResultsUsing a stylized example of the economic evaluation of a new intervention in a simplified UK context, we show that this more general framework can support decisions beyond the approval or rejection of single projects. It shows that broader considerations about the level and allocation of public expenditure are possible and necessary when evaluating specific investments, which requires evidence of the range of benefits offered by marginal changes in different types of public expenditure and normative choices of how the attributes of benefit gained and forgone are valued. ConclusionsThe proposed framework shows how to assess the value of a proposed investment and whether and how the overall level of public expenditure and its allocation across public sector budgets might be changed. It highlights that cost-benefit analysis and cost-effectiveness analysis can be viewed as special cases of this framework, identifying the weakness with each.

PUBLIC EXPENDITURE IN MIZORAM: GROWTH AND TREND

Public expenditure has grown both relatively and absolutely in all the states of the Indian Union. The developmental process in any society had then to be conditioned by priorities policy set by the state. Accordingly the level and direction of public expenditure allocations were to be design for their maximum beneficial impact on economic and social sectors in order that income growth and the performance on social indices reinforced each other. The significance of public expenditure as an instrument of promoting the socio-economic development of a country is well accepted by the development economists in modern times all over the world, particularly in the developing countries which shelters roughly two-thirds of the world’s poverty ridden people. In a socialistic and welfare characterized state, governments directly intervene in achieving an efficient allocation of resources, in achieving an equitable distribution of income and finally in maintaining economic stability in the economy. The growing concern over the necessity of improving the future well-being of the people is of paramount importance, and therefore, has impelled the governments of the developing countries including India to overcome the problems of mass poverty, unemployment, social and economic backwardness etc. KEYWORDS: Public Expenditure, Capital, Revenue, Development, GSDP

Government Regional Expenditure: Pro-poor Expenditure Allocation of Public Expenditure in Kulon Progo Regency, D. I. Yogyakarta

This article aims to show the public expenditure of the Kulon Progo Regional Government responds to welfare issues with a pro-poor budget approach. Currently, Kulon Progo Regency is still the area with the highest poverty rate among regencies/cities in D.I.Yogyakarta. This condition becomes ironic because this area is under the Regional Government, which has the status of receiving special autonomy. This arrangement impacts the disbursement of special funds to Kulon Progo so that its fiscal capacity becomes large. This type of research uses a qualitative approach with the library research method. While the stages of this research consisted of problem identification, literature search, research aims and objectives, data collection, data analysis and interpretation, and research reporting. The study results show that Kulon Progo's public expenditure has not been able to bring this region out of the issue of inequality. The issue of poverty, the low human development index, the high open unemployment rate, and even the low allocation of public expenditure on infrastructure impacts the predicate and image of Kulon Progo, which has not been separated from this issue. In addition, in the aspect of public expenditure, especially based on budget allocations that are pro-poor, in fact, they have not fully accommodated their interests. This can be seen from the data analysis on the issue of inequality in the Kulon Progo Regency, which has not been properly resolved. This reality in the context of Kulon Progo is interesting to study because, with a large enough fiscal power capacity, it has not been reflected in public expenditure oriented towards the people’s welfare.

Fighting Corruption in Developing Countries to Meet the Challenge of Human Capital Development: Evidence from Sub-Saharan African Countries

This paper provides both theoretical and empirical evidence on the need to consider institutions in human capital development in Sub-Saharan African (SSA) countries. In a model of human capital accumulation with public expenditure where we include a corruption parameter, it is found that when a bureaucrat or any other agent takes away part of the amount allocated to education or health, he reduces the quantity and quality of public services. Moreover, an estimation with the generalized moment method in system on panel data of 35 countries covering the period 1996–2018, the results show on the one hand that corruption manages to reduce the output of education and the average duration of studies and life expectancy of citizens through its negative effect on public spending in the education and health sector. On the other hand, corruption has a direct and negative impact on the performance of education. Indeed, it creates a lack of motivation in learning and in plans to pursue higher education because the return is very low, as is access to health and education services. In addition, corruption also distorts the allocation of public expenditure in favor of military, transport, mining, energy, and fuel expenditure as opposed to health and education expenditure. The effectiveness of governments in combating corruption is fundamental to human capital accumulation in Sub-Saharan African countries.

An empirical analysis using new instrumental variable methods of distributional effects of corruption on public expenditures in developing countries.

The online version contains supplementary material available at 10.1007/s43546-023-00452-1.

Inteligencia artificial y planeación presupuestaria en México: promesas y retos en América Latina para la asignación del gasto público

Public budgeting is a complex process that depends on multiple factors, including the consideration of scarce resources and the quality of available information. Artificial intelligence (AI) has the potential to discover models that help explain complex social phenomena, such as the budget planning. However, currently there is little work exploring the application of AI in this context. This paper aims to propose an algorithmic perspective for the allocation of public budget in Mexico by exploring the potential of multilayer perceptron and multi-objective genetic algorithms. The guiding research question is: what is the potential of the multilayer perceptron and multi-objective genetic algorithms in decision making regarding the allocation of the Mexican public budget? The study analyzes open data from the World Bank related to Mexico’s expenditure budget and poverty measurement data provided by the National Council for the Evaluation of Social Development Policy for the period 1990-2020. Additionally, some limitations of this work derived from the inherent complexity of the public expenditure allocation are identified. The model showed indicators that allow us to understand the importance Mexican public budget expenditures in promoting economic development, as well as potentially reducing inflation and inequality. From the analysis, based on AI techniques, it was found that the most important aspects to generate an effective and efficient public budget should focus mainly on fighting poverty, investing in the agricultural sector, encouraging industry, generating policies for the improvement of the health sector, as well as promoting research and development.

Convergence analysis of science, technology, and environment expenditure: evidence from Indian states

PurposeThere is vast disparity in public expenditure on science, technology and environment (STE) across various Indian states. Public expenditure on STE is crucial in maintaining symmetric growth, social cohesion and sustainable development. Literature on this topic is scarce, which prompted the investigation of club convergence of STE public expenditure. In particular, the purpose of this paper to study the club convergence of STE public expenditure in the case of 20 Indian states during the period from 1987–1988 to 2019–2020.Design/methodology/approachThis study applies the clustering algorithm to identify club convergence, advanced by the Phillips and Sul test, which enables identification of multiple steady states or club convergence, unlike beta and sigma convergences.FindingsThe findings of this paper show that all Indian states do not converge towards single steady states. This suggests a disparity in STE public expenditure across Indian states. Moreover, the findings favour three clubs that have their own unique transition paths. The results of this study are supported by the robustness check.Practical implicationsThe findings suggest that the allocation of public expenditure on STE can be made based on club convergence to achieve social cohesion, sustainable development and millennium development goals across states.Originality/valueAlthough several previous studies have investigated the convergence of public expenditure by considering either aggregate public expenditure or health/education expenditure, literature on the convergence hypothesis of STE public expenditure, particularly across Indian states, is scarce. Moreover, this paper is unique, as it examines multiple steady states or club convergence. Finally, this paper contributes to policymaking by suggesting which states should be given a push to achieve social cohesion and sustainable development.

Economic Growth in Saudi Arabia through Sectoral Reallocation of Government Expenditures

The article employs auto-regressive distributed lag (ARDL) cointegration and error-correction modelling to study the long-run impact of investment, exports, imports, and three components of government expenditures (expenditures on health, education, and other government spending) on GDP growth in Saudi Arabia from 1985 to 2018. We observe the long-run positive relationship between GDP, investment, exports and government education expenditure, but a negative relationship between GDP, imports, government health spending, and government other expenditures. The analysis reveals that investment, exports, and government educational expenditures all have long-run positive effects on the GDP growth, while imports, government health expenditures, and government other expenditures negatively affect GDP growth in Saudi Arabia. The Toda-Yamamoto causality test that applies the Modified Wald test establishes causality from exports, government education spending, and government health spending to GDP. We deduce that education expenditures stimulate economic growth in Saudi Arabia in contrast to health expenditures. Additionally, we infer that the various categories of government expenditures have varying effects on GDP. This necessitates a prudent sectoral allocation of public expenditures to maximize its positive effects on GDP growth and stimulate economic growth in Saudi Arabia. Moreover, the above findings have policy implications for the government in Saudi Arabia while allocating its expenditures. Allocating more government expenditures to education, cutting down inessential spending, and downsizing government healthcare expenditures will enhance long-run economic growth in Saudi Arabia. JEL Classification: O470; I15; I25

The Accounting Measurement and Disclosure of Public Expenditure Return and Its Impact on Rationalizing Allocation Decisions

The research aims to identify the essential variables that cause the inefficiency of decisions to allocate public expenditures and that cause the inability to determine the optimal mix of aspects of public expenditure, in addition to providing a suggested approach to reduce these variables and rationalize allocation decisions. Through this research, the researcher tries to answer the research question related to how to rationalize public expenditure allocation decisions? The researcher conducted an analytical study of a number of previous research studies in both the accounting and economic literature which discussed public expenditure allocation and the measurement of social benefits, The researcher also conducted a practical study based on a survey of a number of experts in both economic and accounting literature and public finance science in a number of countries registered in the International Monetary Fund database, with the aim of testing the research hypotheses and the proposed methodologies that he thinks as their ability to reduce the causes of inefficiency decisions allocation. The results of this research are the acceptance of the research hypotheses that have been formulated and concluded that the process of allocating public expenditures lacks an objective measurement of information related to the inputs and outputs of the allocation, and the possibility of achieving this information through the accounting measurement of the return on public expenditure that the researcher put forward as a new target for measurement.

Allocation of Public Expenditure on Agriculture in Sub-Saharan Africa: The Importance of Democracy and Quality of Governance

Allocation of Public Expenditure on Agriculture in Sub-Saharan Africa: The Importance of Democracy and Quality of Governance

"Are Employment Policies Set Up Effectively? Case Study of Selected EU Countries and Slovakia"

"Although there is a consensus on the need for an active employment policy, there are still differences in opinion on which tools should be used to achieve employment policy objectives. The aim of the paper is to examine whether the instruments of active employment policy in the EU countries using the LMP database have been effectively set up, as there is a clear difference in the allocation of public expenditure and how it is provided according to specific support programs. The results suggest that countries such as Austria, Sweden and Germany are examples of the right policy setting (from the allocation of funds to their evaluation). If we evaluate the position of Slovakia, according to the results of the studies, we can say that the most effective tools are in the field of education and therefore the volume of their funding should be increased. Instruments from the Employment incentives section, where Slovakia has the most funds, were found to be effective, but only on the short term, therefore we recommend reassessing the 51.80% stake in this section. The least effective instruments are in the Direct job creation section, in which Slovakia also invests the lowest amount of funds."

Public expenditure allocation, lobbying, and growth

AbstractI develop a two sector model of growth where the final good in each sector is produced using labor and a publicly provided private input (public input). The public input is funded by a proportional tax on the consumption of the two final goods. In the benchmark case, the government allocates the public input between the two sectors to maximize consumer welfare. I contrast the benchmark case to one where the public input allocation is determined via lobbying by firms in the two sectors. In this set up, I first show that allocation of the public input is determined by the relative lobbying power of the firms in the two sectors. Further, lobbying can generate the welfare maximizing allocation only under a very specific set of conditions and, if those set of conditions are not met, then an initial misallocation of the public input gets magnified over time.

Evaluating the impact of violence against women in the macroeconomic Input–Output framework

Violence against women and girls (VAW&G) has progressively become an emergency issue in many European countries and a relevant topic of public discussion. In this paper, we attempt to insert this theme within a model for macroeconomic policy design and evaluation. Special attention is devoted to the assessment of distortions in the allocation of public expenditure generated by VAW&G, in terms of gains and losses in aggregate total output. We adopt a macroeconomic input–output approach by adding to the framework an industry that produces care services to victims of VAW&G. The resulting model is integrated with the public expenditure reallocations that emerge as a result of the progressive elimination of violence. It is, thus, a simulation tool for determining total output gains or losses that emerge from the reallocation of public expenditures as VAW&G fades.

A model of the optimal allocation of government expenditures

AbstractGovernment expenditures can be used for various socioeconomic objectives, including public education, consumption of public goods and services, and social protection. This paper analyzes the optimal allocation of public expenditures among these competing functions. We establish an overlapping generations model with heterogeneous individuals in which the government optimally chooses income tax, transfer payment, educational spending, and public consumption. Our model characterizes the transitional dynamics and the steady state of each function with and without a pay‐as‐you‐go intergenerational contract. We also conduct a simulation illustrating that the presence of an intergenerational contract may raise public consumption and social welfare in the steady state.

Health Financing Policies in Jordan: The Allocation of Public Expenditures in Global Context

Background: This article aimed to clarify the adequacy of government financial resources toward furnishing the provision of efficient healthcare for fulfilling the health challenges in the light of worse economic scenario in Jordan. Methods: This analytical and prognostic study of healthcare spending in Jordan focuses on the public sectors that finance healthcare. Hence, all the available studies and posted materials in the nearby and global levels were used to analyze the government abilities to proceed with presenting healthcare within the current constraints. Results: Our results revealed that, in any case, the Jordanian government is not organized to proceed or prepared to continue providing health services at the present trend: fast increase in demand over publicly funded services in the absence of efficiency gains. Conclusions: For the healthcare system to be significantly efficient and equitable, the cash burden of contributions ought to be progressive toward preserving long-term sustainability. There is a progressive impact of the reform on healthcare provision and finance systems once the contributor's expenses are used to construct it; however, these findings do not seem to be conclusive.

Stock vs flow specification of public infrastructures: a dynamic analysis

Abstract We develop a two-sector model of physical and human capital accumulation, in which the government may allocate resources to both sectors, thereby enhancing productivity. We analyze the impact of both the level of government spending and its composition on growth and welfare, and derive their respective growth-maximizing levels. We show that both the growth-maximizing and welfare-maximizing rates of allocation of public expenditure are independent of the way infrastructures are defined (flow or stock). This conclusion, however, does not extend to the dynamics of the model where the adjustment to fiscal policy is very different. After a tax cut, for instance, the growth rate of physical and human capital converge to the new equilibrium from opposite directions under the stock specification; whereas they converge from the same direction under the flow specification.

The Optimization of Budget Outcome to Create Trust in Public Expenditure Allocation on Local Budget

The Optimization of Budget Outcome to Create Trust in Public Expenditure Allocation on Local Budget

Corruption, Public Expenditure and Human Capital Accumulation

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

Government ideology and party priorities: the determinants of public spending changes in Italy

The literature developed by scholars dealing with policy agendas suggests that it is more important to look at changes in governments’ priorities rather than in their ideology, and criticizes the partisan theory as inadequate. However, hypotheses based on conventional wisdom and normative theories, holding that the identity of the governing parties matters for the allocation of public expenditures, are still recurrent in the debate. And many empirical studies found mixed evidence on the importance of party ideology. Focussing on Italy (1948–2009), this article empirically tests whether shifts in governments’ ideology and policy priorities are related to public spending changes in four policy sectors. The results indicate that shifts in governments’ priorities are related with public spending changes in welfare and defence, while they are not relevant to explain changes in public order and education spending. Government ideology is relevant only when it comes to defence spending, but this influence can be hindered by veto players. We argue that these findings do not disprove the importance of partisan politics but warn us against relying too much on the distinction between left and right parties. At the same time, more research is needed to understand under which conditions partisan preferences translate into changing public policies.

Instytucje finansowo-prawne w ustawie Prawo wodne

Some fees and payments are connected with obligatory participation in the cost of public projects and public investment. In the framework of the Water Law Act there are diverse public payments and fees. In this law there is the drainage fee and the investment fee. There are also contributions and other payments to the water companies. In the regulations of the Water Law Act there are also legal financial solutions for sharing the public costs, the use of budget subsidies, fixing and allocation of public expenditure.