Increase In Public Spending Research Articles

Debt Cancellation to Avert Fiscal Austerity: Helpful Beyond Controversy?

ABSTRACT In 2021, a group of economists launched a proposal asking for the write-off of the public debt built-up in the ECB’s balance sheet and an increase in public spending for a similar amount. This proposal generated strong criticism, which can be organized into three blocks: (i) debt relief occurs when a central bank purchases public debt, and its cancellation does not improve the situation faced by governments; (ii) the proposal is grounded in an erroneous concept of ‘fiscal space’, and there are better alternatives for the financing of public spending; (iii) the proposal would be counterproductive or illegal. This article rebuts those criticisms, finding the plan helpful to avoid a return to fiscal austerity. More specifically, debt cancellation makes quantitative easing, the unconventional monetary policy that justified the purchase of public debt, irreversible whilst simultaneously increasing the fiscal space of Eurozone Member States. Finally, and most relevant, the proposal includes a specific commitment to an increase in public spending.

THE STATE’S GENERAL BUDGET DEFICIT : A SOCIOECONOMIC STUDY OF THE PHENOMENON’S REPERCUSSIONS AND ITS TREATMENT IN NORTH AFRICAN COUNTRIES (MOROCCO - ALGERIA - TUNISIA - EGYPT AS A MODEL)

This study aims to analyze the phenomenon of the budget deficit and identify its causes in Morocco-Algeria-Tunisia-Egypt, and know the mechanisms that countries adopt to confront the deficit through a set of mechanisms. As it turns out that, the budget deficit is a structural deficit linked to the continued increase in public spending and the weakness of public revenues, as the economies of these countries remain hostage to policies with limited horizons in light of the weakness of alternative financing sources of a sustainable nature

The role of budget imbalance in public spending–underground economy nexus: evidence from OECD countries

PurposeThe purpose of this study is to analyze the relationship between public spending, budget imbalance and underground economy. In addition, this paper investigates how budget imbalance moderates the public spending–underground nexus.Design/methodology/approachBy utilizing a data set spanning from 1995 to 2017 of 35 OECD countries, the study has employed Dynamic Common Correlated Effects (DCCE) approach. The study is also extended to consider the marginal effects of public spending on the underground economy at different degrees of budget imbalance.FindingsThe results indicate that an increase in public spending and budget imbalance contributes to the expansion of underground economy. Interestingly, the effects of public spending on the underground economy will enhance and intensify with a higher budget imbalance level. The results are robust to various specifications and their broader implications are discussed.Practical implicationsGovernments should carefully implement a fiscal policy with a clear understanding that increasing public spending leads to the expansion of informality. Besides, policymakers should enforce supportive policies to boost economic growth, cooperation and cross-border trade to control the size of the underground economy.Originality/valueThis study stresses the role of public spending, budget imbalance on the underground economy in OECD nations. To the best of the author's knowledge, this study pioneers to explore the moderating effect of budget imbalance in the public spending–undergrround nexus.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2022-0645.

Una aproximación al coste presupuestario de universalizar la salud bucodental en España

ObjectiveTo make an approximation to an estimate of the impact that an increase in the portfolio of oral health benefits would have on public health spending, which would at least cover most of the therapeutic treatments that households currently pay for privately. MethodThis estimate is based on the level of expenditure on dental services of the Health Accounts System for the year 2020. The data of increased demand is extracted from a RAND's study on universalization of services. Then we carry out various linear projections of increased spending by introducing several linear co-payment assumptions to explore the impact of different mixed financing mechanisms. ResultsThe increase in the demand for treatment would be 47.54% with respect to the current level of spending and that, under the starting assumptions, the increase in public spending would reach some 5345 million euros. Various co-pay scenarios could reduce budget impact. ConclusionsDespite the improvement in the oral health of the Spanish population, there are still problems derived from the existence of a socioeconomic gradient that promotes the concentration of the presence and prevalence of diseases in the lowest socioeconomic levels. Extending the services of the oral-dental portfolio to attend to the entire population would increase public health spending by 0.48 points over GDP and, even so, Spanish public health spending would continue to be below the EU-27 average.

Government Spending between the Instability of Returns and Exchange Rate Variables, An Analytical Study in Iraq (2010-2020)

The study addresses the most important problems the Iraqi economy faces, the irregularity in the spending process and its irregularity during the fiscal year. Also, government units sought to spend all the public funds allocated to them before the end of the fiscal year regardless of the specific objectives. In the spending process, the public spending is done only to spend and not to achieve specific goals. The exchange rate’s contribution to achieving internal and external balance, and despite the variation of many factors affecting it, there is a broad consensus on the effectiveness of the spending role and the currency window in the Iraqi dinar exchange rate, especially in the Iraqi economy. This is because the increase in government spending increases the supply of cash, domestic demand, prices, and consequently inflation, which negatively affect the exchange rate of the Iraqi dinar. So the central bank intervenes through the currency window to stabilize the exchange rate of the local currency 2010-2020). To establish the roadmap, the researcher clarified the aforementioned relationship. The government spending negatively affects the value of the Iraqi dinar because of the increase in the money supply and inflation from the increase in public spending. This is to sterilize the money supply by absorbing the surplus cash (the Iraqi dinar) by supplying more foreign currency to maintain the value of the Iraqi dinar. The local currency exchange rate rise affected the decrease in inflation significantly.

Assessing non-linear effects of government size on inflation in India: recent evidence from smooth transition autoregression model

PurposeStandard economic theory predicts that any increase in public spending is accompanied by a rise in inflation in an economy. This paper presents empirical proof that prices do not always rise with an increase in public expenditure but only up to a certain threshold level. The primary aim of this paper is to unearth the government size-inflation nexus in India for the period from 1971 to 2019.Design/methodology/approachThe logistic STAR (smooth transition autoregression) model is employed to unravel the government size-inflation nexus for the Indian economy from a non-linear perspective.FindingsThe finding of our study confirm the non-linear relationship between the size of the government and inflation in India. The estimated threshold level for government size is precisely found to be 9.27%. The size of the government exerts a negative influence on inflation until it reaches the optimal or threshold level. Any further increase in the size of government beyond this threshold level would result in a rise in inflation.Research limitations/implicationsThe findings have implications for the conduct of fiscal policy. Policymakers can increase government spending in a regime of small government size without having any inflationary impacts by generating revenues from taxes and other sources instead of relying much on the central bank. In the regime of a large-sized government, adhering strictly to the discipline in the conduct of fiscal and monetary policies would help curb inflation and enhance growth synchronously, hence alleviating any loss of welfare.Originality/valueTo the best of the authors’ knowledge, this study is an attempt to revisit the government size-inflation nexus in India from a non-linear perspective using the Smooth Transition Autoregression (STAR) model for the first time.

New perspectives on the contribution of sanitary investments to mortality decline in English cities, 1845-1909.

Health improved in English cities in the last third of the nineteenth century, in tandem with substantial increases in public spending on water supplies and sanitation. However, previous efforts to measure the contribution of public expenditures to mortality improvements have been hampered by difficulties in quantifying public health investments and the lack of mortality data for specifically urban populations. We improve upon the existing evidence base by (1) creating measures of the stock of urban district sanitary capital, by type, on the basis of capital expenditure flows, rather than loan stocks; (2) using mortality and capital stock data that relate to the same administrative units (urban districts), and (3) studying the period 1880-1909 as well as the earlier period from 1845. The stock of sewerage capital was robustly related to improvements in all-cause mortality after 1880. The size of this effect varied with the extent of public investment in water supplies, suggesting complementarity between the two assets. For the period 1845-84, investments in water were associated with declines in infant and child mortality but the effect was much smaller and less precisely estimated in later decades. Our results suggest that improvements in water and sewerage targeted different transmission pathways for faecal-oral diseases.

The macroeconomic effects of climate policy: A Keynesian point of view

The paper analyzes the effects of introducing a corporate carbon tax on GDP and the effectiveness of this macroeconomic policy. The study is based on constructing a simple Keynesian model with flexible prices. It shows that the carbon tax can have a double beneficial effect on the economy in addition to its favorable effect on the environment: i.e., an increase in GDP and employment. The initial values (y = 100; C = 60; I = 18; G = 16; g(A) = 6) was used to simulate a positive shock of the carbon tax T, increasing from 1.75 to 1.9. The paper considers three different cases depending on the low (Case 1), medium (Case 2), or high (Case 3) sensitivity of the marginal propensity to consume in response to an increase in the prices of goods. In addition, case 4 is considered: stimulus policy associated with climate policy; and case 5 is: policy to increase nominal wages. The results show that the carbon tax can lead to an increase in prices. Although the tax does not excessively negatively affect consumption, it has a positive effect on GDP via the increase in green investments and the induced increase in public spending. Households are, therefore, not necessarily penalized because they benefit from the multiplier effects of the increase in public spending due to the introduction of the ecological tax. Furthermore, stimulus policy is even more effective when combined with an emissions tax.

Effects of public and external health spending on out-of-pocket payments for healthcare in sub-Saharan Africa.

Financing healthcare in sub-Saharan Africa (SSA) is characterized by high levels of out-of-pocket (OOP) payments for healthcare. This renders many individuals vulnerable to poverty and deviates from the Universal Health Coverage (UHC) goal of providing financial protection for healthcare. We examined the relative effects of public and external health spending on OOP healthcare payments in SSA. We used the system generalized method of moments (GMM) estimator and data from the World Bank's World Development Indicators for 43 SSA countries from 2000 to 2017. The results show that reductions in OOP payments are higher with increases in public spending than external spending. This means increases in public health spending, compared with external health spending, will increase the pace towards achieving the financial protection goal of UHC in SSA. But since government spending is limited by fiscal space and parliamentary approval, public health spending through social health insurance might provide a regular means of financing healthcare to speed up achieving the financial protection goal in SSA countries.

The economic impact of long-term care services

Abstract Projections show sharp increases in public spending on long-term care (LTC) services across Europe. However, a purely cost-based focus on LTC services is economically misleading. Private and public expenditure on LTC services directly and indirectly generates income in the form of salaries, taxes, and social security contributions. The aim of this paper is to quantify the economic impact and multipliers of LTC services for Austria. Based on an econometric regional Input-Output model for Austria, we estimate the direct, indirect, and induced effects of public and private expenditures on value added, employment, taxes, and social security contributions. According to our results, each euro spent on LTC services is associated with domestic value added of € 1.70; 70 cents per euro spent flows into public budgets in the form of taxes and social security contributions. The economic multipliers of the LTC services are comparatively high due to the high share of wages and salaries in direct expenditure and the associated high direct value added. Public expenditure on professional care services should therefore not be regarded merely as a cost factor in the public budget. Rather, this rapidly growing economic sector is also an increasingly important economic factor in a time of ageing societies. While the model does not provide information on the causal economic effect of the LTC sector, the findings are still highly important for planners of LTC reforms, as they provide information on the total value added associated with LTC expenditures and on the total number of jobs that these expenditures sustain.

Analyze of the impact of education spending on economic growth in Senegal from 1998 to 2017

The objective of this article is to analyze the impact of education spending on economic growth in Senegal from 1998 to 2017. This study was based on an econometric modeling that showed that spending on Education positively influences economic growth captured by Gross Domestic Product (GDP). In fact, the results of the regression revealed that the increase in public spending on education by 1% leads to a 3% increase in economic growth in Senegal for the period 1998-2017. Education spending has a positive impact on economic growth.

Determinants of Government Debt in the Member States of the European Union: Sources of Fiscal Risk

Abstract In times when the national economy needs increased financial support from governments, the fiscal space they have and the determinants of public debt come to the fore. Sudden increases in public spending or significant decreases in public revenue represent fiscal risks, and the level of sovereign debt is a measure to quantify fiscal risk. At international level, banking crises, government guarantees, publicprivate partnerships, companies with majority state capital, and non-performing loans are revealed by history as the main sources of financial crises and fiscal risk. This study aims to identify whether social assistance expenditures, government guarantees, public-private partnerships, non-performing loans, or tax revenues influence the evolution of the government debt of the Member States of the European Union. The data used were taken from Eurostat and were organised as panel data, the analysed period is 2010-2018. To estimate the regressions, we used the Eviews software, and the results obtained revealed that social assistance is the variable that most strongly influences, in the same sense, the public debt. This points to the fact that changes in pension and social assistance spending, for example, topics with greater social impact, are capable of further indebtedness and have long-term effects on government spending on interest.

Changes in the Field of Budgetary Reserves Management in Connection with the Need to Ensure the Epidemic and Financial Security of the State During the Pandemic of SARS CoV-2

The spread of the SARS-CoV-2 virus and the related restrictions on commercial transactions have an economic effect whose scale is difficult assess. At the same time, the need for activities intended to prevent and counter the epidemic results in a significant increase in public spending, which undoubtedly threatens the financial security of the state. For the above reasons, numerous rules that modify the principles of public finance management were introduced to the Polish legal system after the state of epidemic had been declared. The aim of the article is to present and analyse the amendments in the field of management of the general reserve and special purpose reserves that were introduced to the Polish legal system in order to ensure the proper execution of budgetary tasks during the pandemic. This aim is achieved through the presentation and analysis of the so-called Second Anti-Crisis Shield, i.e. the Act of 31 March 2020 amending the Act on Special Solutions Related to Preventing, Counteracting and Combating COVID-19, Other Infectious Diseases and the Resulting Crisis, as well as the provisions of the so-called Budget-Related Act for 2021, i.e. the Act of 19 November 2020 r. on Special Solutions to Implement the Budget Act for 2021. The implementation of the indicated research objective leads to conclusion that the introduced changes significantly broaden the scope of the executive’s decision-making competence in the implementation of the state budget, which may raise doubts in the light of the constitutional principle of exclusivity of the legislative authority in shaping state revenues and expenditures.

The intra‐articular injection of adipose‐derived stem cells decreases pain and reduces inflammation in knee osteoarthritis, with or without the addition of platelet‐rich plasma also improves functionality

The increase of individuals with Osteoarthritis (OA) has generated an increase in public spending in the treatments, which are still not that effective. So, the purpose of this study was to analyze and compare four types of interventions: platelet-rich plasma (PRP), adipose-derived stem cells (ADSCs), ADSCs+PRP and the standard surgical video arthroscopy (All groups passed through standard arthroscopy before intervention). The evaluation was performed by applying the questionnaires Western Ontario McMaster Universities, Short Form Health Survey 36 and Visual Analog Pain Scale, also by analyzing the synovial fluid (inflammatory cytokines, enzymatic, colorimetric and viscosity analysis), this evaluation happened in two moments: before the surgical procedures and after 6months of the interventions and also was made a comparison to standard arthroscopy. The questionnaires results showed a greater improvement in the scores of the domains analyzed in the ADSCs+PRP group, followed by the ADSCs and PRP group. In the evaluation of inflammatory cytokines, there was a significant reduction in the cytokine IL-1b only in the ADSCs+PRP group (46%) and ADSCs (31%), of IL-6 in the ADSCs+PRP group (72%), of IL-8 in the ADSCs+PRP group (50%) and ADSCs (31%), and TNF in the ADSCs+PRP group (46%). There was also a significant increase in the amount of total proteins (79%) in the control group and polymorphonuclear cells (47%) in the ADSCs+PRP group. Taking all the results into account, we infer that therapies with ADSCs+PRP and only ADSCs are safe and effective over 6months for the improvement of pain, functional capacity and joint inflammation in volunteers with OA. It is also considered that the use of ADSCs+PRP, particularly, is a promising alternative to help manage this disease, due to the better results presented among the four propose interventions.

The Impact of Military Spending on the Financial Performance in Iraq for the Period 2003-2020

Given the importance of the issue of public expenditures and their role in supporting economic development and as a result of the repeated wars on Iraq, the increase in military spending had a negative impact on the performance of the financial policy of the Iraqi economy, so researchers tried to focus on this subject to reach a mechanism that makes the repeated increases in military spending less painful. On the financial performance, by relying on international experiences in this field and their role in transforming the spending process on military magazines with an economic return, making the process of economic development based on the results of international experiences related to the subject, and the researchers concluded that the increase in public spending, and in particular spending The military was very large and had a negative impact on the economic performance of the field of economic activities. The researchers recommended relying on local capabilities to supply the military industry with all the requirements that would raise the level of the defense and security structure in Iraq and all the requirements of industrial development in this field in order to show the real effects of military spending on financial performance .

IMPACT OF THE EXISTENCE OF THE BTS TOWER (BASE TRANSCEIVER STATION) IN JATIROTO DISTRICT, WONOGIRI REGENCY YEAR 2021

Noviasari, Anggi. NIM. 1751100010. Impact of the Existence of BTS Tower (Base Transceiver Station) in Jatiroto District, Wonogiri Regency in 2021. Supervisor : Muh Husyain Rifai,S.Pd,M.Pd. and Ary Wijayanti, S.Pd, M.Pd. Essay. Geography Education Study Program, Faculty of Teacher Training and Education, University of Veterans Bangun Nusantara, Sukoharjo. 2021. This study aims to determine: (1) the distribution and affordability of the BTS tower signal (2) The impact of the existence of the BTS tower on the education of students at SMKN 1 Jatiroto (3) The impact of the existence of the BTS tower on the economic changes of the community around the BTS tower. The method used in this study is a qualitative descriptive method. This study describes/describes and finds out the impact of the existence of BTS towers on the education of students of SMKN 1 Jatiroto and the economic changes of the surrounding community. Data collection techniques used are through observation, questionnaires and documentation. The results of the study can be concluded that: (1) The distribution and coverage of the BTS Tower Tower signal in Jatiroto District is spread over three areas and there are five BTS Tower Towers. Each BTS Tower can reach a signal as far as 5km and this is also influenced by the topography of the surrounding area (2) The impact of the existence of a BTS tower on the education of students at SMKN 1 Jatiroto has a positive impact in the form of making it easier for students to access the internet, making it easier for students to learn. The negative impact is radiation from the BTS tower signal and anxiety about the collapse of the BTS tower. (3) The impact of the existence of the BTS Tower on the economic changes of the surrounding community is that it can increase economic income, such as increasing income for people who sell credit and make it easier to access the internet. The negative impact is the increasing number of people's needs to buy credit which results in an increase in public spending, radiation from BTS tower signals.

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Abstract. Introduction. This article is devoted to the state of public global public debt and new approaches towards its regulation in both developed and developing countries. The theoretical and methodological bases of effective external debt management are considered in the paper. Globalization of the world economy and finance has led to increasing of funds raised in the international debt market and strengthened its part in the system of world finance. Purpose. The subject of this research is public debt in different groups of countries. Analysis of the situation with global public debt and the peculiarities of its regulation is necessary to learn positive foreign experience for its possible application. The following factors of significant increase of public debt are outlined: severe reduction of economic activity and decline in government revenue; increase of public spending, including related to anti-crisis measures; growing primary deficit, and this, the need to increase borrowings. The countries with low and middle income additionally face significant capital outflows from their financial markets, devaluation of national currencies, and difficulties with debt refinancing. Results. The article examines the problem of the external debts growth of different countries, dynamics and modern structure of the global external debts and efforts made by the international institutions and national regulators in order to tighten control over operations in the international debt market. The author comes to conclusion that an aggravation of the problem of external debts globalization hampers the restoration of stability and sustainable growth of the modern world economy. The main tasks performed in the process of public debt management are determined. The means of debt management, in particular, the mechanisms for restructuring public debts, are determined. The paper reviews the organizations involved in the restructuring of public debt. Conclusions. The obtained results can be used for further prospective studies of external debt management mechanisms taking into account world practice, as well as for the implementation of debt policy instruments in the crisis period.

Between freedom of choice and the economic compulsion – the pension system in the face challenges of growing demographic burden

Zachodzące w Polsce od początku lat dziewięćdziesiątych XX wieku zmiany demograficzne, związane między innymi z wydłużaniem się średniej długości życia i jednoczesnym spadkiem dzietności, prowadzą do gwałtownego wzrostu wskaźnika obciążenia demograficznego. Uwidoczniły one proces coraz szybszego starzenia się społeczeństwa, zjawiska będącego poważnym problemem nie tylko stricte demograficznym, ale i społeczno-ekonomicznym, prowadzącego do stałego zwiększenia wydatków publicznych i zmian zasad funkcjonowania systemów emerytalnych, zwłaszcza obniżania wysokości świadczeń i podnoszenia wieku emerytalnego. Wzrost odsetka osób starszych w populacji winien skłaniać do podjęcia działań zaradczych, mających na celu zniwelowanie choćby części tych negatywnych skutków. W artykule wskazano na istotne powiązania przemian demograficznych z pogarszającą się sytuacją systemu emerytalnego oraz podkreślono, iż jego reformy, nie zawsze znajdujące szerokie poparcie społeczne, stają się warunkiem realizacji jednej z ważniejszych zasad zrównoważonego rozwoju społeczno-ekonomicznego, czyli sprawiedliwości międzypokoleniowej. Głównym celem artykułu jest wskazanie najważniejszych oddziaływań kryzysu demograficznego na zmiany sytuacji społeczno-ekonomicznej kraju na przykładzie systemu emerytalnego oraz przedstawienie wybranych rozwiązań w celu lepszego przystosowania się do nowego porządku demograficznego. Uwagę skoncentrowano na konieczności zwiększania aktywności zawodowej ludności w wieku senioralnym, której potencjał jest wykorzystywany w niewystarczającym stopniu. Ze względu na złożoność i obszerność problemu artykuł obejmuje jedynie pewien zarys poruszanych tu kwestii.

АУДИТ ЕФЕКТИВНОСТІ: ПОНЯТТЯ ТА ПРИНЦИПИ

The article analyzes the prerequisites for the formation of performance auditing. Its role in ensuring the efficiency of budget management is determined. It was revealed that the widespread use of performance audit in the world is associated with such factors as the expansion of the scope of governments, the activation of their role in socio-economic development, the increase in public spending and the scarcity of resources, the development of democratic institutions and the growth of public consciousness. Scientific approaches to the interpretation of the nature of performance auditing are considered. It was found that in developed countries, performance audits have long gone beyond the public sector, audit companies perform it for clients regardless of their ownership. At the same time, in Ukraine, performance audits are conducted only for the state organizations, enterprises and institutions and are practically not considered by audit companies or their clients as a promising direction. Domestic scientists also mostly consider it only for the budget sphere, which is due to the relevant requirements of Ukrainian legislation. The expediency of conducting performance audit for the private sector is substantiated. The performance audit principles, which belong to the «3E's» concept and are described in ISSAI – economy, efficiency and effectiveness – are characterized. The authors analyzed modern approaches to including the principles of environment, equity, ethics, economic welfare into the list of performance audit principles. The authors proposed and characterized the principles of expediency and evolution. It was determined that conducting performance audit can become a kind of tool for achieving the goals of sustainable development and at the same time help the enterprise to improve the results of its activities. Trends in the further development of performance auditing are revealed, which is proposed to be defined as a form of audit that aims to analyze and assess how economically, efficiently and effectively the entity uses its resources in accordance with the goals of sustainable development and ethical values.

Measuring the Impact of Oil Revenues on the Level of Public Expenditures for the Iraqi Economy for the Period from (2004-2019)

Oil-producing countries depend on oil revenues mainly to finance their public budgets and thus influence Directly on the public spending process and according to economic logic, the financial abundance leads to an increase in public spending. And that's what A detailed event in the Iraqi economy during the years of explosive budgets for the years 2012 and 2013 due to high prices Oil has reached unprecedented levels. The process of public spending did not focus on the investment side, which would The economy and the various sectors developed, as they focused only on recreational and consumer activities, which led to the loss of an opportunity Financial abundance and the lack of impediment to the advancement of the Iraqi economy. The research focuses on the variables of oil revenues and public spending and the close relationship that exists between them. The quarterly data was taken, which is more accurate than the annual data, and the sample consisted of 66. Watching from 2004 to 2019. The series was subjected to silence tests for the two mentioned variables, and it was found that they did not They settle at the level and are stabilized when taking the first difference and after doing the graph test and proceeding to complete the rest the exams . An autoregressive ARDL method was selected, and the appropriate model was selected. For each of the oil revenues and public spending, and regarding the integration parameter, it was negative and significant, as well as the limits test that He indicated the possibility of long-term interpretation that the coefficients of the variables were significant, as the percentages of significance ranged between 1%, 5%, and . 10% of the sequence. The model was subjected to a dimensional test, which confirmed the integrity of the model from standard problems and the statistical as a test of autocorrelation of the residuals and the result was not significant. As well as the test for instability of homogeneity of variance, which is The other is immaterial.