Expenditure Policy Research Articles

The Role of Public Spending Policies in Boosting GDP in Iraq

Purpose: The research seeks to show the role of public spending policies in promoting GDP by stating the role of spending policy indicators in GDP during the research period. Theoretical Framework: The research deals with many concepts related to the subject of the study, which are public spending and its policies, in addition to concepts related to public expenditure policy indicators. Also, the definition of GDP and its trends in the Iraqi economy. Design/Methodology/Approach: Use the financial statements for the period (2004-2021) to knowing the trends of public spending in the Iraqi economy and to knowing the role played by analyzing the spending policies used by the government in directing public spending. In addition to analyzing GDP data and the role of public spending policies in promoting them Findings: The results lead to knowing the role played by public spending in the GDP during the research period, as the researcher tries to reach a statement of the result of the direct relationship between public spending policies and GDP. Research Implications: The results emphasize the increasing importance of integrating the current research variables in the formulation of expenditure policies that suit the Iraqi economy in line with strengthening the GDP in the future by directing spending to the productive sectors, which leads to increasing their contribution to the GDP. Originality/Value: This study works to enhance awareness of the importance of directing public spending efficiently and effectively to ensure the achievement of its future goals, the most important of which is to enhance the gross domestic product.

Asymmetric fiscal policies and digital economy development: An empirical analysis based on the global digital value chain perspective

The indicator system for evaluating the development level of the digital economy is multidimensional and dynamic. Accurate and scientific evaluation of the digital economy's development level is crucial. This study, based on the characteristics of the digital economy's development stages, evaluates the value creation dimension of the digital economy from the perspective of the global digital value chain. Additionally, it considers the access and usage dimensions to construct a comprehensive indicator system for evaluating the global digital economy development level. The results reveal significant disparities in digital economy development between countries, but also show that some developing countries have experienced rapid improvements in their digital economy development levels. In theoretical and empirical research, this paper utilizes the Barro Rule and the Cobb-Douglas production function, employing mathematical derivations combined with empirical regression analysis to explore the relationship and mechanisms between asymmetric fiscal policies and digital economy development during economic downturns. It finds that in the new era of the digital economy, governments often implement proactive asymmetric fiscal expenditure policies during downturns. Continuously promoting the development levels of national digital economies is an important mechanism for forming these characteristics of fiscal expenditures. Finally, this study proposes relevant policy recommendations, enriching academic research and policy discussions in the fields of financial fiscal policy and digital economy development.

Belediye Yönetimlerinin Gelir ve Harcama Politikaları Nasıl Olmalıdır?

Revenue and expenditure policies of municipal governments should be determined by taking into account the principles of sustainability, efficiency and justice of local governments. The main purpose of these policies is for municipalities to provide public services effectively and increase the welfare of the society. Revenue policies determine the resources that municipalities can use to meet their budget needs. These sources generally consist of local taxes, fees, transfers and other revenue sources. It is important that income policies are fair and burden different segments of society in a balanced manner. At the same time, a reliable basis should be created for budget planning and long-term investments by ensuring the continuity and predictability of revenues. Expenditure policies determine how municipalities will use these resources. Expenditures should be aimed at increasing the efficiency of municipal services. In this context, investments should be made in priority areas, projects that will increase efficiency should be prioritized and waste of resources should be prevented. In addition, spending policies should be transparent and shared with the public so that the society can receive the services they expect from municipalities and participate in management processes. In this study, the revenue and expenditure policies of municipalities were examined by comparative analysis method and some determinations were made about how the municipalities' revenue and expenditure policies would be. In this context, the revenue and expenditure policies of municipal governments should be regulated in a balanced and fair manner to meet local needs, ensure sustainability and increase social welfare. Correct implementation of these policies will strengthen the effectiveness of local governments and their trust relationship with the society. Key Words: Local Administrations, Municipalities, Revenue Policies, Expenditure Policies, Participatory Budget Jel Code: E62, H71, H72

Research on Innovative Development of Urban Low-carbon Technology and Green Economy

This paper focuses on analyzing the effects and mechanisms of green fiscal expenditure policies on low-carbon technology innovation. This section selects pilot cities with comprehensive demonstration of energy conservation and emission reduction fiscal policies as typical green fiscal expenditure policies from the city level, focusing on green fiscal expenditure.On this basis, this paper conducts econometric model analysis on the estimated coefficients of the benchmark regression, confirms the robustness of the benchmark regression results, and finds through heterogeneity analysis that the effect of the demonstration policy in promoting low-carbon technology innovation is more significant in non-resource-based cities and non-old industrial base cities.

A PATH TOWARDS SUSTAINABLE DEVELOPMENT FROM FISCAL INSTRUMENTS: THE ROLE OF TAX REVENUES AND PUBLIC EXPENDITURES

Tax and expenditure policies have a range of economic, social, and environmental objectives. Although these policies are multidimensional, the relevant literature focuses on a single dimension. The long-run aim of public policies, including tax and expenditure policies, is to ensure sustainable development that includes all these dimensions. The sustainable development index is a broad indicator that combines economic, social, and environmental factors, including human development and ecological quality. This study aims to examine the effect of tax revenues and public expenditures on the sustainable development index in Turkiye for the period 1990-2019. According to the study results, while tax revenues affect sustainable development positively, public expenditures affect it negatively. The results of the study support that Turkiye implements its tax policy in a balanced manner towards sustainable development goals and emphasizes that it should review its expenditure policy. This study underscores the importance of aligning both tax and expenditure policies to effectively pursue sustainable development objectives in Turkiye.

Evaluating the health outcomes of aging in place: the role of medicaid aging waiver program on U.S. older adults

The Medicaid Aging Waiver program (MAW) subsidizes the cost of long-term care (LTC) at home or in communities to satisfy older people’s increasing desire to age in place. The MAW program might be health improving for older people by allowing them to age at home. However, less quality and quantity of home-based care comparing to nursing home care could offset some of the potential benefits. I use policy expenditure across states over time linked with detailed health information from the Health and Retirement Study (HRS) to identify the associated effects of MAWs on health outcomes of older adults who are at risk of needing LTC and who are resources constrained to be potentially eligible for Medicaid. Overall, the findings suggest that the MAW program is beneficial to health: a $1,000 increase in MAW spending for each older person results is associated with a 1.4 percent improvement in self-reported health status, a 1.5 percent reduction in functional mobility limitations, a 1.6 percent decrease in Instrumental Activities of Daily Living (IADL) limitations, and a 1.7 percent improvement in negative psychological feelings. For older people who are most likely not eligible for MAWs, such as those who are wealthy or in good health and do not require LTC, these health-improving effects have not been observed.

Imperfect financial markets and the cyclicality of social spending

This paper explores the link between default risk and fiscal procyclicality. We show that countries with higher sovereign risk have a more procyclical fiscal expenditure policy, which is driven mostly by transfers. We build a small open economy model with income inequality, social transfers, and default risk to rationalize this fact. Without default risk transfers are countercyclical, inequality is procyclical, and external debt is used to smooth distortionary taxation. With default risk, transfers account for most of fiscal adjustment because taxation becomes costly for the government. Transfers become procyclical and inequality worsens during times when risk premia are high. We confirm the predictions of the model in the data: in recessions in economies with default risk, transfers take the bigger burden relative to government consumption, whereas the opposite is true in economies with low default risk.

Inclusive economic growth and fiscal intervention: could it reduce poverty, inequality, and unemployment in East Java?

Before the COVID-19 pandemic, East Java Province (then abbreviated to East Java) made remarkable achievements in economic growth accompanied by a continuing downward trend in poverty. Then, after the COVID-19 pandemic broke out in 2020, it had a detrimental impact in terms of health, economics and social aspects. Specifically for East Java, the outbreak caused a severe contraction in the economy and significantly increased the number of local unemployed. However, long before COVID-19, East Java was facing wide inequality. Based on these problems, this study evaluates whether inclusive growth and local government fiscal intervention are solutions. These two factors have been recommended by economist as an effective strategies for reducing the triple problem in East Java. Fiscal intervention is interpreted as expenditure policies in economic, education, and health functions. Using panel data regression during 2015-2021, the study documents that economic growth in East Java still needs to be fully inclusive. This is based on the finding that inclusive economic growth does not simultaneously reduce triple problems (poverty, inequality and unemployment). Inclusive growth reduces poverty in East Java, but it has the opposite effect on unemployment and inequality. On the one hand, positive findings are documented in which fiscal intervention in education spending plays a significant role in reducing poverty. Unfortunately, this study failed to find the determining factors that provide a solution to inequality and unemployment in East Java. These evidences certainly have implications for reviewing the quality of inclusive growth and local government expenditure policies.

Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?

In today's world, where energy demand and climate change are experienced, the transition to renewable energy comes to the fore. The main tools used in the expansion of renewable energy are taxes and expenditures. This study examines the impact of R&D expenditures, environmental taxes and economic growth on renewable energy consumption in selected EU countries from 1995 to 2019. This study used augmented mean group (AMG) and dynamic common correlated effects (DCCE), which are novel estimators. Two different long-run estimators were used to obtain robust results. According to the results of the study, Environmental taxes have a positive effect on renewable energy consumption in Germany and France, while they have a negative effect in Spain and Slovenia. R&D expenditures positively impact renewable energy in Portugal, Lithuania, and Slovakia, while negatively affecting it in Germany and Spain. EU countries, which have equal responsibilities in expanding renewable energy, need to review their tax and expenditure policies and implement them in a coordinated manner.

Government Expenditure and Economic Growth: A Comparative Analysis of Japan

Purpose: The aim of the study was to investigate the government expenditure and economic growth: a comparative analysis of Japan
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The comparative analysis of government expenditure and economic growth in Japan revealed a positive correlation between increased public spending and economic expansion. Strategic allocations towards sectors like education and healthcare were found to significantly contribute to long-term growth. Recommendations stressed the importance of transparent and accountable spending practices for sustained economic development, emphasizing prudent fiscal management and efficient resource utilization.
 Unique Contribution to Theory, Practice and Policy: Keynesian economics, wagner's law & endogenous growth theory may be used to anchor future studies on the government expenditure and economic growth: a comparative analysis of Japan. Develop a comprehensive framework for evaluating the effectiveness of government expenditure policies in Japan. Fiscal Sustainability Strategies: Develop strategies for ensuring the long-term sustainability of government finances in Japan, given the challenges posed by an aging population and rising healthcare costs.

The Interactions between Labour Market Policies and Income Inequalities in Groups of European Union Countries

Social cohesion and a sustainable labour market remain the aims of sustainable development policy. However, income inequalities and labour market policies are more often separately analysed. To fill the identified research gap, our article presents the results of an analysis of interactions between active and passive labour market policies and income inequalities in the European Union. The 27 countries were divided into two clusters based on their active and passive labour market policy (LMP) expenditures in 2019. These clusters sustain the basis for analysing the interactions between LMP and income inequalities in its different measures. The results reveal that labour market interventions interact with income inequalities, decreasing disposable income inequalities (equalising the disposable income after transfers and taxes) and therefore contributing to social cohesion. This paper concerns social cohesion as the manifestation of intragenerational justice.

A New Approach for Better Industrial Strategies

Industrial policy is back. After having been considered a taboo since the 1970s, “new industrial policies” are at the core of governments’ strategies to support countries during crises and enable the green and digital transitions. Virtually, every government has used and uses industrial policy, despite continued concerns related to anticompetitive effects, within and across countries, captured by vested interests and the opportunity cost of public funds, which economists have pointed out, based on previous unsuccessful experiences. In this paper, we contribute to the debate on industrial policy by presenting both a sound and simple framework to help design industrial policies and also data that allow the comparison of industrial strategies and their priorities across countries. First, this paper summarises our recent framework for industrial strategies, which is designed to offer practical policy advice and shed light on the complementarities between different policy instruments. Such a framework is particularly useful when designing complex mission-oriented industrial strategies promoting the green transition of the business sector. Second, this paper presents some salient results from the new “Quantifying Industrial Strategies” (QuIS) project, which gathers harmonised data on industrial policy expenditures, policy priorities, and policy instruments, thereby allowing the benchmarking of industrial strategies across countries. Based on the aforementioned conceptual framework, QuIS measures industrial policy expenditures across 9 OECD members, for the period 2019–2021. The data, now publicly available on the OECD website, show the importance of industrial policy expenditures, and the growing role of green industrial policies in countries industrial strategies.

The Role of the Local Government in Fostering Entrepreneurship – Evidence from Municipalities in the Kraków Metropolitan Area

Abstract Subject and purpose of work The study was conducted in the municipalities of the Kraków Metropolitan Area. It aims to identify models for supporting local entrepreneurship and assess their effectiveness. The effectiveness of the models was evaluated by measuring the diversity and changes in the number of enterprises in the area. We also presented entrepreneurs’ opinions on their satisfaction with specific policies. Materials and methods: Secondary ( literature and statistical data) and primary data sources were used in the paper. The primary source was a survey among entrepreneurs. The survey research to assess the performance of entrepreneurship policy involved 21 municipalities. We apply a mixed-method approach here (comparative indicator analysis, cluster analysis and Kruskal-Wallis tests). Results: The research demonstrated that the policy involving entrepreneurship support through tax instruments (reduced local tax rates) does not contribute significantly to providing entrepreneurship-fostering conditions. The study revealed that the level of entrepreneurship may be affected more by the expenditure policy, such as the municipality’s efforts to establish special economic zones, organise training, establish business information points, etc. Conclusions: Local governments (LG) that are attractive to investors (such as easily available infrastructure and proximity to markets) should adopt high property-tax rates. The tax is undervalued in peri-urban municipalities (compared to property value) and does not burden the business. Second, LG should focus on hard projects. They should intensify spatial planning and land management to ensure space for business to grow. It will entail conflicts and balancing the needs of diverse social groups, but it must be done to stimulate local socioeconomic development.

Non-monetary motivations of the EU agri-environmental policy adoption. A causal forest approach

This paper investigates the non-monetary motivations of farmers' adoption of agri-environmental policies. Unlike the monetary (income) motivations, non-monetary drivers can not be directly observed but can be identified from observational data within appropriate quasi-experimental designs. A theoretical justification of farmers' choices is first formulated and a consequent natural experiment setting is derived. The latter admits heterogeneous, i.e. Individual, Treatment Effects (ITE) that, in turn, can be interpreted in terms of more targeted and tailored policy expenditure. A Causal Forest (CF) approach is adopted to estimate these ITEs for both the treated and not treated units. The approach is applied to two balanced panel samples of Italian Farm Accountancy Data Network (FADN) farms observed over the 2008–2018 period and concerns agri-environmental policies delivered through the Common Agricultural Policy (CAP). Results show how heterogeneous the farmers’ response and the associated non-monetary motivations can be, thus indicating room for a more efficient policy design.

Kebijakan Belanja Negara dalam Tinjauan Fikih

Islam is a perfect teaching that includes learning norms for human life in the world and the hereafter, including economic learning which includes the State's shopping policy as one of the fiscal tools of the State, all of which have a purpose for the welfare of individuals and society. In this paper, the author will try to collect data from several literatures to examine briefly how Islam and economics as well as the State expenditure policy based on Islam, in terms of understanding, history, its application in modern times, as well as its combination with existing conventional system or which has been applied in advance by States which sometimes cause obstacles and problems in its implementation. Islam is a perfect teaching that includes learning norms for human life in the world and the hereafter, including economic learning which includes the State's shopping policy as one of the fiscal tools of the State, all of which have a purpose for the welfare of individuals and society. In this paper, the author will try to collect data from several literatures to examine briefly how Islam and economics as well as the State expenditure policy based on Islam, in terms of understanding, history, its application in modern times, as well as its combination with existing conventional system or which has been applied in advance by States which sometimes cause obstacles and problems in its implementation.

TRENDS IN STATE FINANCES IN INDIA FROM 1990-91 TO 2020-21

The frequent changes in the political parties in power in states have influenced the revenue mobilisation and expenditure policies of the state governments in India. Economic and political factors over a period of time are responsible for leading the state government to a fiscal crisis. Rapid deterioration of state governments finances in India has been a serious issue in recent decades in India. The deterioration of State governments finances is mainly due to increase of committed revenue expenditure and implementation of too many welfare schemes and freebies. As per RBI report 2022-23, the state governments debt to GDP ratio is 29.5 percent in India in 2022-23. But it is more than the FRBM limit of 20 percent. The state governments total expenditure is about one and half times more than the Centre expenditure. After implementation of GST in 2017 in India, GST is the major source of revenue (42 %) for state governments. This paper examines a comprehensive analysis of trends in state finances in India during the last 30 years period. KEYWORDS: State Finances, Fiscal Imbalances, Revenue, Expenditure, Deficits.

The Effects of Local Government Expenditures on Carbon Dioxide Emissions: Evidence from Republic of Korea

This study analyzes the direct and indirect effects of local government expenditure for air quality on CO2 emissions using a two-stage dynamic panel model. The results of the first-stage empirical analysis show that local government expenditure for air quality has a positive effect on per-capita GRDP. In the second-stage empirical analysis, an inverse U-shaped relationship between the per-capita GRDP and CO2 emissions is observed. The average direct and indirect effects of local government expenditure for air quality on CO2 emissions indicate that local government expenditure directly reduces CO2 emissions, while it indirectly increases CO2 emissions through regional economic growth. However, the direct effect is found to be greater than the indirect effect, and the total effect indicates that local government expenditure for air quality reduces CO2 emissions. Furthermore, the results demonstrate significant regional disparities in both the direct and indirect effects, emphasizing the pivotal role of tailored air-related expenditure policies in relation to regional economic growth.

Economic Development Strategies: Taxes, Incentives, and Public Expenditures

Economic development strategies may include tax, incentive, and public expenditure policies. Budget-constrained state and local governments must make tradeoffs when determining the final mix of economic development and other public policies each year. In this paper, I first provide descriptive evidence on economic development policy tradeoffs. I then classify economic development strategies and relate them to real GDP per capita growth.

Бюджетная политика горнодобывающего предприятия в условиях меняющейся геополитической обстановки

In the context of the sanctions pressure, the main objective of the expenditure policy of the mining industry is to increase the efficiency of its operations while optimising its value. The study analyses the main factors affecting the expenditure policy of a mining company. It describes the value-based management methodology that applies the Activity-Based Costing (ABC) and the Deming Cycle tools from PDCA to develop a value-based management system to continually improve the operational efficiency and to reduce costs. Application of these tools jointly to manage mining operations is a powerful instrument that is both efficient and easy to use. The featured example of using these methods showed the model's ability to generate a bottomup baseline cost budget, identify and understand sources of cost variation and suggest possible solutions within a continuous improvement cycle. The model is not only applicable to underground mining, but can easily be adapted to any other mine or plant operation. An innovative methodology of value-based mining management is presented that is effective and easy to apply in a dramatically changing geopolitical environment.

An analysis of policies supporting the roles of family physicians in four regions in Canada during the COVID-19 pandemic.

Policy supports are needed to ensure that Family Physicians (FPs) can carry out pandemic-related roles. We conducted a document analysis in four regions in Canada to identify regulation, expenditure, and public ownership policies during the COVID-19 pandemic to support FP pandemic roles. Policies supported FP roles in five areas: FP leadership, Infection Prevention and Control (IPAC), provision of primary care services, COVID-19 vaccination, and redeployment. Public ownership polices were used to operate assessment, testing and vaccination, and influenza-like illness clinics and facilitate access to personal protective equipment. Expenditure policies were used to remunerate FPs for virtual care and carrying out COVID-19-related tasks. Regulatory policies were region-specific and used to enact and facilitate virtual care, build surge capacity, and enforce IPAC requirements. By matching FP roles to policy supports, the findings highlight different policy approaches for FPs in carrying out pandemic roles and will help to inform future pandemic preparedness.