Components Of Expenditure Research Articles

The aggregate effects of government income transfers shocks: EU evidence

This paper estimates the aggregate effects of government income transfers shocks for a sample of EU countries. I construct a new measure of transfers shocks based on a dataset by public finance experts of the European System of Central Banks (ESCB). The identification strategy consists of a narrative analysis of policy actions in old age pensions reported in the ESCB dataset. I find that increases in old age pensions have a positive impact on aggregate expenditure components and employment consistent with a multiplier effect between 0 and 1.

Deflation by Expenditure Components: A Harmless Adjustment?

Deflation by Expenditure Components: A Harmless Adjustment?

Analysing the impact of quality of government expenditure on economic growth: evidence from Indian states

Proliferation of endogenous growth theories has engendered different models connecting government expenditure with a country's long-term growth. Numerous studies based on this growth theory revealed that different components of government expenditure have distinct impact on economic growth due to their differing productivity. Following fiscal consolidation measures in India, the quality of states' government expenditure has been compromised periodically. Therefore, overarching purpose of this study is to empirically examine which component of government expenditure more productively contributes to states' economic growth using a panel data of 29 states/union territories over a period 2004-2005 to 2019-2020. Empirical findings ratify a priori, that capital (revenue) expenditure is productive (unproductive) and positively (negatively) impacts states' economic growth, whereas, economic and social services expenditures are unproductive. The findings have some policy implications in order to sustain and enhance the regional economic growth and to maintain fiscal discipline while persevering with fiscal consolidation.

Significant Changes in Resting Metabolic Rate Over a Competitive Match Week Are Accompanied by an Absence of Nutritional Periodization in Male Professional Soccer Players.

Resting metabolic rate (RMR) is an important component of total daily energy expenditure; however, it is currently not understood how it varies across a typical competitive match week in professional soccer players. For the first time, we aimed to assess RMR throughout an in-season competitive week in professional soccer players. Additionally, we aimed to assess energy and carbohydrate intake across the same week. Twenty-four professional soccer players from an English Premier League club (age: 18 ± 1.6years) completed the study. RMR was assessed each morning of a typical competitive match week (match day [MD] -3, -2, -1, +1, +2, and + 3), and dietary intake (including MD) was assessed daily via the remote food photography method and 24-hr recall. Daily training load was quantified using Global Positioning System, daily muscle soreness ratings were recorded, and body composition was assessed via dual-energy X-ray absorptiometry. There was a significant (p = .0004) increase in mean RMR of ∼261kcal/day on MD + 1, compared with MD - 1. Additionally, volume of oxygen consumed significantly increased at MD + 1 (p = .0002) versus MD - 1. There were no significant differences in daily energy or carbohydrate intake across the competitive week (p > .05), with inadequate carbohydrate intakes on MD - 1 (∼3.9g/kg body mass), MD (∼4.2g/kg body mass), and MD + 1 (∼3.6g/kg body mass) in relation to current recommendations. We report, for the first time, that RMR is significantly increased following a competitive match in professional soccer players. In addition, we confirm previous findings to reinforce that players exhibit inadequate nutrition periodization practices, which may impair physical performance and recovery.

Contemporary approaches to the assessment of energy intake and energy expenditure in athletes

Assessment and interpreting of the energy expenditure (EE) in highly skilled athletes are important components of an effective training and performance prediction. Each component of EE (resting energy expenditure, thermic effect of food, and physical activity energy expenditure) is closely related to dietary patterns, the intensity and duration of physical activity, as well as a number of other factors that affect the functional state of athletes. Despite the importance of EE in the training process, coaches and athletes often do not take EE into account, which reduces the objectivity of assessing athletes' functional state. The purpose of this research was to summarize the recent information on the structure of EE and energy consumption in athletes. Material and methods. The search and analysis of publications was carried out using the PubMed, MEDLINE, Scopus, Web of Science, eLIBRARY databases, mainly for the last 10 years, using the search keywords: rest energy expenditure, thermic effect of food, physical activity energy expenditure, energy intake, total energy expenditure, athletes. Results. This overview includes information on the components of total energy expenditure, such as rest energy expenditure, thermic effect of food and physical activity energy expenditure, as well as generalized information on the factors affecting the variability of their values and methods for assessing one or another type of energy expenditure. International nutritional recommendations regarding the level of physical activity of athletes are systematized, as well as the advantages and disadvantages of methods for studying energy consumption and total energy expenditure are presented. Conclusion. Combined study of energy intake and energy expenditure will help athletes avoid the negative impact of energy deficiency on performance, and the correct construction of the training process with the maintenance of adequate energy consumption will have a positive impact on the performance and recovery processes after intensive physical exertion.

Out-of-pocket expenditure on maternal health care in two backward districts of Karnataka

BACKGROUND: Maternal health is an important indicator of a woman's health and society. Safe motherhood is still a nightmare in many communities. Medical services related to maternal health are almost free in India, yet many families face significant out-of-pocket (OOP) expenditure, especially in poor communities in the rural areas, leading to more poverty and exclusion. This study has the aim of revealing OOP expenditure on maternal health care in rural areas. METHODS: A community-based cross-sectional study was conducted among 386 randomly selected mothers who had delivered a baby in the past 2 years in two backward districts of Karnataka using a mixed method. Univariate, bivariate, and t-tests were used for the analysis. RESULTS: The findings revealed that poor education and low income have a significant association with OOP expenditure. Getting laboratory services, purchasing medicine from the market, informal payments to the hospital staff, and other indirect costs are the major components of catastrophic expenditure for the poor mothers. CONCLUSION: It is concluded that there is strong evidence to support the high burden of maternal health-care spending. More comprehensive schemes are needed in the government's maternal health-care services to reduce out-of-pocket expenses.

Are Determinants of Government Expenditure Symmetry or Asymmetry? Fresh Evidence from Nigeria

Nigeria government has been playing the role of internalizing economic externalities, dealing with issue of unemployment and overall welfare of the populace. However, in the presence of huge and rising government expenditure, unemployment, and inflation rate still persist. This therefore called for a revisit of what determines government expenditure. There are three issues yet unresolved in the debate of what drives government expenditure. These are omitted variables bias, aggregation bias and asymmetry issue. To deal with aggregation bias, we focus on the components of government expenditure, that is, capital and recurrent. To address the issue of asymmetry, nonlinear autoregressive distributed lag was employed. Data are obtained for relevant variables spanning 1981–2021. Model of government expenditure developed by Peacock and Wiseman (1961) combined with Devarajan et al (1996) and Giavazzi, et al (2000) models are utilized. The following results are obtained. First, government capital expenditure is countercyclical while recurrent expenditure is procyclical. Second, some drivers of government expenditure, such as exchange rate and oil price, exhibit asymmetry behavior. Asymmetric tax revenue shows potential to drive capital expenditure but significantly and positively influences recurrent expenditure. Asymmetric behavior of oil revenue and exchange rate also engenders capital expenditure. However, asymmetric behavior of degree of openness and inflation rate negatively affects capital expenditure. Asymmetric behavior of tax revenue and oil revenue posted positive effect while exchange rate and degree of openness have negative effect on recurrent expenditure. Period of election is also a strong positive determinant of recurrent expenditure both in the short and long run. Following the nature of cyclicality of the component of government expenditure, the priority of government could be on capital expenditure since it will provide essential public goods required for the economy to flourish. Bearing in mind that oil revenue is volatile, it is imperative for government to rely more on tax revenue than oil revenue. Engaging in forward exchange rate might be appropriate to deal with any possible exchange rate fluctuation.

Asymmetric Impact of Government Expenditure on Economic Growth in Nigeria

"The study investigates asymmetric impact of government expenditure on the economic growth of Nigeria using secondary data that spans through 1981 through 2018. In capturing the asymmetric impact, the study adopted the Non-Linear Auto-regressive Distributed Lag (NARDL) model. Government expenditure components (recurrent and capital expenditure) were decomposed to positive and negative changes due to government review. From the result, it was confirmed that in the short-run, both positive and negative changes in recurrent and capital expenditure had a significant positive impact on economic growth in Nigeria at different time lag. In the long-run, positive changes in recurrent expenditure have a negative impact on economic growth, while negative changes have a positive significant impact on economic growth in Nigeria. Positive changes in capital expenditure have a positive impact on economic growth, while negative changes has a negative 5% significant impact on economic growth. It was concluded from the findings that government expenditure plans has a significant impact on the economic growth of Nigeria in the short-run and long-run. Therefore, it is recommended that government should rebalance its plans between capital and recurrent expenditure to enhance its growth target."

Analisis Komponen Utama dan Biplot untuk Mereduksi Faktor Inflasi Berdasarkan Indeks Harga Konsumen

Inflation of a region can be measured from the Consumer Price Index (CPI) by spending group. The aim is to look at the factors that influence monthly inflation based on the CPI for 2021. Principal Component Analysis is used to reduce the expenditure group variables in the CPI, followed by biplot analysis to display the visualization of the first two main components of the PCA in a two-dimensional graph. The results of the main component analysis, (1) the primary expenditure component consists of housing, water, electricity and household fuel variables; equipment, tools and household routine maintenance; transportation; information, communication and financial services; recreation, sports and culture, (2) secondary expenditure components include food, drink and tobacco variables; health; education; general, and (3) complementary expenditure components, namely clothing and footwear variables; personal equipment and other services. These three components simultaneously can represent 88.1% of the diversity of the data. Biplot analysis succeeded in describing the similarity and position of the variables with a total variance of 75%

ПРО ЗАГАЛЬНУ І СПЕЦІАЛЬНІ ТЕОРІЇ ЦІННОСТІ

Ретроспективно розглянуто класичні й новітні концепції і теорії вартості й цінності. Акцентовано на синтетичних і фундаментальних розробках, необхідності їх розвитку з огляду на випереджальну експансію сфери олюднення. Висунуто гіпотезу про всезагальність і складність ціннісних відносин. Визначено їх філософсько-загальнонауковий і економічний зміст. Ціннісні відносини (цінність) представлено як складну систему суб’єкт-суб’єктних відносин з приводу взаємопов’язаних і економічно значимих для суб’єктів відповідностей: а) між суб’єктивним образом реального об’єкта й самим реальним об’єктом, у тому числі між різними елементами першого, з одного боку, і різними елементами останнього – з іншого; б) між різними елементами суб’єктивного образа реального об’єкта; в) між різними елементами реального об’єкта. Зазначена система є ядром фундаментальної теоретичної моделі (схеми) цінності. Охарактеризовано кориснісну і витратнісну складові цінності, а також тріалектику її загального, особливого й унікального. Загальна складова цінності притаманна всім ерам і епохам розвитку людства, особлива – окремим епохам і сферам діяльності, унікальна – окремим способам виробництва. Розроблено темпоральний простір загальної теорії цінності в координатах результатів діяльності, сфер і атрибутів, вимірів, а також історичних рамок діяльності й цінності. Показано позиціювання в ньому теорії трудової вартості. Розглянуто історичну коеволюцію діяльності й цінності в контексті співіснування та зміни ер і епох розвитку людства. Запропоновано концептуальну і фундаментальну теоретичну схему загальної теорії цінності. Ядра спеціальних теорій цінності набувають статусу часткових теоретичних схем загальної теорії цінності. Зроблено висновок про необхідність каталізації наукових пошуків тих нових спеціальних теорій цінності, які здатні адекватно описати й пояснити ціннісні відносини в олюдненні (опосередкованому, безпосередньому і в цілому), в тому числі у створенні знаннєвих і знаннєво-інформаційних продуктів

Inequality and Welfare by Food Expenditure Components.

This paper examines inequality and welfare in food consumption expenditure in Pakistan. The indices are derived on the basis of Sen’s welfare function by employing HIES, 2005-06. The empirical results show that inequality and welfare varied widely in urban and rural areas. It can be seen that the concentration index of non essential/luxury food components are unevenly distributed over the total expenditure in favour of rich families. The price elasticity of welfare indicates that rising prices of food components have negative effect on the aggregate welfare. The present analysis provides a basis for determining the magnitude of inequality and welfare that can help in designing appropriate policies. JEL classification: D12, D13, D31, I31 Keywords: Food Consumption, Inequality, Welfare, Elasticity

Evaluation of self-sufficiency of territorial communities as the basis for ensuring their sustainable development

Purpose. The article aims to evaluate the level of financial self-sufficiency of territorial communities in terms of ensuring their sustainable development.
 Methodology / approach. An approach that involves the consequent implementation of compositional, empirical, and taxonomic stages based on the calculation of empirical parameters (based on the structural-spatial approach using the linear weighting) of structural levels (revenue and expenditure components) of financial self-sufficiency for the city, town, and village communities was developed to achieve the set objective. The general level of financial self-sufficiency is calculated based on the integral approach. The communities are ranged by the criterion of the efficiency maximization in the management of financial resources to achieve economic development. 
 Results. The results of the evaluation for 73 communities showed that city territorial communities in Lvivska oblast had high (Lvivska) and moderate (Stryiska, Pustomytivska, Horodotska, Sudovovyshnyanska, Chervonohradska, Sambirska, and Kamyanko-Buzka) levels of financial self-sufficiency in 2021, so they were able to secure sustainable economic growth. The article reveals that 75 % of town communities had low levels of financial self-sufficiency (from 0.218 to 0.372), which is the consequence of weak fiscal capacity and, thus, low financial independence and high budget subsidiarity. Sokilnytska (0.788) and Solonkivska (0.637) village communities showed positively high results and 33 % had a moderate level of revenue component of financial self-sufficiency (from 0.414 to 0.553). The situation is triggered by their close location to the oblast center and sufficient fiscal independence. The ranking of communities by the criterion of the efficiency maximization in the management of financial resources revealed four groups. The group with a moderate level (45 communities) is the largest. 
 Originality / scientific novelty. The article develops a scientific and practical approach to the evaluation of self-sufficiency of territorial communities. Unlike others, it provides the combined (integral) evaluation of the significance of the components of territorial communities’ financial self-sufficiency and allows the detection of the complementary impact of financial self-sufficiency on ensuring sustainable economic development of the territory.
 Practical value / implications. The article offers a set of tools to evaluate financial self-sufficiency of territorial communities. Their application by local governments will serve as the informational-analytical basis for the elaboration of measures to strengthen the capacity and self-sufficiency of territorial communities with modernizing the existing strategies or developing the territorial economic growth (or recovery) programs. The application of the methodological approach makes it possible to identify budget planning deficiencies timely and improve the efficiency of the use of financial resources of local self-government bodies.

DISAGGREGATED HEALTH EXPENDITURE, HIV PREVALENCE AND ECONOMIC GROWTH IN WEST AFRICA : THE AUGMENTED SOLOW GROWTH MODEL APPROACH

This study investigated the relationship among health expenditure, HIV prevalence and expansion of productive economic activities in West Africa using sub-regional aggregate time series data from 1992 to 2020. The augmented Solow growth model was adopted to enable us to understand and maximize both the theoretical and empirical anatomy of HIV prevalence as it relates with the expansion of productive economic activities and disaggregated health expenditure in West Africa in the context of a growth theory and to conveniently apply the Hsiao causality framework in the form of a vector autoregressive model. The augmented Solow model theoretically made it possible for us to uniquely identify and specify six (6) bivariate hypotheses-supported models as sustainable fulcrums for the empirical application and validation of the Hsiao causality test. Health expenditure was disaggregated into total, public, household out-of-pocket, and non-household private health expenditures to specifically determine the impact of the relationship between the expansion of productive economic activities and HIV prevalence on each of these components of health expenditure. The results show that the total health expenditure-led growth and private health expenditure-led growth hypotheses were not validated for the sub-region. However, the growth-led total, growth-led public, and growth-led private health expenditure hypotheses are validated for the sub-region. Also, HIV prevalence-led total, HIV prevalence-led public, and HIV prevalence-led private health expenditure hypotheses are validated for West Africa. The study recommended that for sustainable inflows of total, public and private health expenditure into the sub-region, the expansion of productive and growth-enhancing economic activities and HIV mitigation policies should incorporate health expenditure policies both in the long, and short-run periods.
 Keywords: Hsiao causality, HIV Prevalence, Health Expenditure, Economic Growth, 
 Solow Model.
 JEL CLASSIFICATION:C11, C18, I10, I150

Expenditure Patterns of The Poor In Central Sulawesi

Eradication of poverty is one of the SDG's Goals. Increase in regional income and economic growth of Central Sulawesi has continued to occur in the last 5 years. However, Central Sulawesi still has poverty rates above the national average and relatively higher than other regions. Permendagri No. 53 of 2020 notes that one of the strategies related to poverty reduction is reducing the burden of spending on the poor. This study aims to explain how poor people allocate their expenditures. So it is hoped that it can add alternative regional poverty reduction policies. The data used is household expenditure data with the criteria below the Central Sulawesi Poverty Line. The database is sourced from raw data Susenas 2020. This study analyzes spending patterns, both food and non-food consumption components of the poor. The results showed that the consumption pattern of the poor was relatively larger for food consumption, namely 64 percent compared to non-food consumption at 36 percent. As for the details of the 5 largest food and non-food expenditure components, there are the Housing and Household Facilities component, the Grain component, the Prepared Food and Beverage component, the Miscellaneous Goods and Services component and the Cigarette and Tobacco component. This study recommends the interventions to reduce regional poverty through assistance in reducing the expenditure burden of the poor based on their needs according to the results of the study.

Expenditure Patterns of The Poor In Central Sulawesi

Eradication of poverty is one of the SDG's Goals. Increase in regional income and economic growth of Central Sulawesi has continued to occur in the last 5 years. However, Central Sulawesi still has poverty rates above the national average and relatively higher than other regions. Permendagri No. 53 of 2020 notes that one of the strategies related to poverty reduction is reducing the burden of spending on the poor. This study aims to explain how poor people allocate their expenditures. So it is hoped that it can add alternative regional poverty reduction policies. The data used is household expenditure data with the criteria below the Central Sulawesi Poverty Line. The database is sourced from raw data Susenas 2020. This study analyzes spending patterns, both food and non-food consumption components of the poor. The results showed that the consumption pattern of the poor was relatively larger for food consumption, namely 64 percent compared to non-food consumption at 36 percent. As for the details of the 5 largest food and non-food expenditure components, there are the Housing and Household Facilities component, the Grain component, the Prepared Food and Beverage component, the Miscellaneous Goods and Services component and the Cigarette and Tobacco component. This study recommends the interventions to reduce regional poverty through assistance in reducing the expenditure burden of the poor based on their needs according to the results of the study.

Heterogeneity in end of life health care expenditure trajectory profiles

Treatment at the end of life forms a major component of aggregate health care expenditure. Expenditure, however, begins to increase several years before death and varies substantially across individuals. This paper investigates heterogeneity in expenditure profiles across a 36 month period preceding death using group-based trajectory models. A mixture of generalised linear models with four components fits the data best, and identifies decedents in to high cost late rise, medium-high cost late rise, medium-low cost, and low cost late rise expenditure profiles. Approximately 35% of the sample is allocated to the high cost late rise trajectory with average monthly expenditure of £493 36 months prior to death rising linearly for about 28 months before exponential growth to £4000 in the month preceding death. Health conditions at the beginning of the period increase the risk of being in a higher cost trajectory with cancer having the largest impact. The existence of concurrent morbidities substantially raises the probability of membership to the high-cost late rise profile group. A better understanding of the determinants of expenditure profiles in the run up to death contributes to informing policies aimed at mitigating costs while not compromising quality of care.

Convergence Analysis of Social Sector Expenditure and its Components: Evidence from the Indian States

ABSTRACT This paper examines the convergence of public expenditure and its major components using sub-national data from India. By employing the panel club convergence test, the paper finds convergence in per capita public expenditure across Indian states implying that distribution policies of public expenditure are effective and fair across the states. Subsequently, the convergence of per capita total social sector expenditure and its major components are studied. The results support the evidence of convergence for total social sector expenditures and in the case of its components, we find that six of the nine components display regional convergence. Three components, namely, per capita education, sports, art and culture expenditure; per capita social security and welfare expenditure; and per capita rural development expenditure display the evidence of divergence and the presence of multiple transition paths. From the policy perspective, these three components of social expenditures need greater attention by the state governments as these expenditures are important for social cohesion, sustainable development, and achieving millennium development goals.

Is there any putative mediatory role of inflammatory markers on the association between ultra-processed foods and resting metabolic rate?

The resting metabolic rate (RMR) represents the largest component of total daily energy expenditure. The sale of ultra-processed foods (UPF) is increasing globally; however, UPF can have many adverse effects, including increasing inflammatory markers and altering RMRs. This cross-sectional study included 285 healthy overweight and obese women. Anthropometric measurements were evaluated using a bioelectrical impedance analyzer InBody 770 scanner. High-sensitivity C-reactive protein (hs-CRP), plasminogen activator-1 (PAI-1), monocyte chemoattractant protein (MCP-1), and interleukin-1 beta (IL-1β) blood levels were measured after a 12-h fasting. Indirect calorimetry was used to evaluate the RMR by using the Weir equation, and RMR deviation (RMR estimated - RMR actual), RMR per body mass index (BMI), and free fat mass (FFM) were estimated. A validated food frequency questionnaire (FFQ) was used, and seven groups of UPFs were extracted based on the NOVA method. A negative association between the RMR [β = −0.159, 95% confidence interval (CI): −0.471, −0.052, P = 0.044], RMR per BMI (β = −0.014, 95% CI: −0.025, −0.006, P = 0.036), and RMR per FFM (β = −0.241, 95% CI: −0.006, −0.000, P = 0.041) using the NOVA score was observed after adjusting for confounders. This association disappeared after inclusion of each inflammatory marker. All the markers may inversely mediate the relationship between the mentioned variables and the NOVA score. hs-CRP and MCP-1 also had a negative effect on the relationship between the NOVA score and RMR deviation. Finally, UPF intake is likely related with the RMR, mediated through changes in the production of hs-CRP, PAI-1, MCP-1, and IL-1β.

Measuring the burden of accidental injuries in India: a cross-sectional analysis of the National Sample Survey (2017–18)

Globally, injuries are the leading cause of premature deaths and disability and account for nearly 9 per cent of total deaths worldwide. Like other countries, India also faces a very high burden of injuries, with the second most common cause of death and disability. Annually, 0.15 million people lose their lives due to accidental injuries/road traffic accidents in India, which is 11 per cent of the accident-related death worldwide. This study aims to analyse the socio-economic and demographic differentials in the magnitude of economic burden and coping strategies associated with accidental injuries in India. The study used the nationally representative cross-sectional data on the ‘Key Indicators of Social Consumption in India: Health, (2017–18)’ of the National Sample Survey Organisation (NSSO). Simple descriptive statistics have been used to measure the incidence and intensity of accidental injuries. The economic burden is estimated through out-of-pocket (OOP) health expenditure on accidental injuries and the use of different sources of finance to cope with the same. In addition, the logistic regression analysis has been used to analyse the association between socio-economic covariates and the likelihood of suffering from accidental injuries in India. The findings reveal that, unlike outpatient care, the high incidence in inpatient care reveals that hospitalisation is inevitable in most cases after accidental injuries. Among various socio-economic variables, the incidence of accidental cases is higher among individuals residing in urban areas, males, educated persons, and economically better-off sections of society. Also, the mean monthly OOP expenditure on the accidental injuries-affected population has been estimated at INR 2672 .46 (US$ 41.06) and INR 3041.64 (US$ 47.09) in inpatient and outpatient care, respectively. Almost the same sections and the individuals who received insurance spend more OOP expenditure on accidental injuries. However, OOP expenditure as a share of total consumption expenditure (TCE) is significantly high among their counterparts, such as rural inhabitants, illiterates, scheduled castes, the very poor and those who do not have any kind of health insurance coverage. In addition to savings/income, individuals depend more on the distress sources such as borrowings and selling of household assets to meet their OOP health expenditure in India. In conclusion, the high incidence of accidental injuries threatens people more than some of the other ailments in India. A strict motor vehicle act, administrative and political determination, awareness campaigns through various media platforms, diverse road lane systems and traffic norms can help reduce accidental fatalities in the country. Reducing the economic burden of accidental injuries requires increasing public spending on healthcare services as a percentage share of the country’s GDP. Furthermore, comprehensive universal health insurance coverage for all, including each component of healthcare expenditure, is the need of the hour.

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