Total Government Research Articles

Government Revenue and Government Spending Nexus: A Testing Hypothesis for Indonesia

There are still differences of opinion about the connection between government expenditure and revenues. This study aims to test hypotheses related to the direction of the relationship between Indonesian government revenues and expenses. By utilizing quarterly time-series data in the period 1969: q2 – 2020: q4, the test was implemented using the Vector Autoregressive (VAR) model. The test results show that an increase in total government revenue and tax revenue causes an increase in government spending during the study period. The results of this study provide supporting evidence for the revenue-and-expenditure or tax-and-spending hypothesis for the Indonesian government budget. The implication is that the government budget is always in deficit, and the need for financing (i.e., loans) is unavoidable

Triggering economic growth to ensure financial stability: case study of Northern Cyprus

This study questions the importance of public debt in stable growth between 1980 and 2018, specifically, the Ricardian equivalence hypothesis and Keynesian view are questioned. This study used data obtained from the Northern Cyprus State Planning Office. A restricted vector autoregressive model is used to test the causal relationships between this model and public debt, government expenditure, total capital, consumption, investment, employment, net exports, exchange rate, and gross domestic product growth rate. To ensure financial stability, the variables that trigger economic growth through increased interactions were evaluated. Accordingly, unlike other studies, the Wald test results reveal that public debt does not have a direct effect on the gross national product but indirectly affects total capital, consumption, investment, and public expenditure, all of which influence real gross domestic product (RGDP). It has been observed that employment affects RGDP, consumption, government spending, and investment. There is also bidirectional causality between consumption, government spending, and RGDP. The estimates of the Ricardian equivalent hypothesis are important. However, today's changing economic policies, declining real incomes, and consumer behavior in the face of ever-increasing inflation require that the theory be redesigned. Therefore, contrary to theoretical predictions, consumers are concerned about maintaining their standard of living rather than directing tax deductions to savings. Contrary to the claims of Keynesian researchers, no causal relationship is observed between public debt and growth in this study. However, public debt directly affects total capital, consumption, government spending, and investment, which are important for sustainable economic policy.

Pharmacoepidemiology and costs of medications dispensed during pregnancy: A retrospective population-based study.

To describe the pharmacoepidemiology and costs associated with medications dispensed during pregnancy. Pharmacoepidemiological study and cost analysis. Queensland, Australia. All women who gave birth in Queensland between January 2013 and June 2018. We used a whole-of-population linked administrative dataset, Maternity1000, to describe medications approved for public subsidy that were dispensed to 255 408 pregnant women. We describe the volume of medications dispensed and their associated costs from a Government and patient perspective. Prevalence of medication use; proportion of total dispensings; total medication costs in AUD 2020/21 ($1AUD = $0.67USD/£0.55GBP in December 2022). During pregnancy, 61% (95% CI 60.96-61.29%) of women were dispensed at least one medication approved for public subsidy. The mean number of items dispensed per pregnancy increased from 2.14 (95% CI 2.11-2.17) in 2013 to 2.47 (95% CI 2.44-2.51) in 2017; an increase of 15%. Furthermore, mean Government cost per dispensing increased by 41% from $21.60 (95% CI $20.99-$22.20) in 2013 to $30.44 (95% CI $29.38-$31.49) in 2017. These factors influenced the 53% increase in total Government expenditure observed for medication use during pregnancy between 2013 and 2017 ($2,834,227 versus $4,324,377); a disproportionate rise compared with the 17% rise in women's total out-of-pocket expenses observed over the same timeframe ($1,880,961 versus $2,204,415). Prevalence of medication use in pregnancy is rising and is associated with disproportionate and rapidly escalating cost implications for the Government.

Estimating the Footprint of Government on the Economy (Article)

INTRODUCTION
 Total Government Expenditure and the percentage that it represents of the total Gross Domestic Product (GDP) is often taken as a measure of the size of the government’s footprint and its involvement in the economy. A low percentage reflects that the government’s capacity to influence the economy through fiscal instruments is limited, and low rates are often cited as prime reasons for governments pursuing aggressive taxation policies to build their financial muscle. In Pakistan, the general government expenditure as a percentage of GDP stands at about 22 percent. Many quarters, including multilateral donors agencies, have persistently called for the government to increase its tax revenue collection capacity through either increasing its tax rates and/or increasing the number of total tax filers in the country because the government is always in a deficit. The issue of the tax system in Pakistan is a separate matter and has been discussed through various other PIDE publications over the years.

Tax Court Decisions as the Ultimum Remedium for Taxpayers

Taxes obtained can directly finance all state activities. State revenues, while coming from tax revenues, are also obtained from revenues outside of taxes which consist of 3 parts, which can be seen as income, capital or money to finance total government activities as shown in Law Number 17 of 2003 concerning State Finance, which can be explained in principle as follows. First, State revenues are derived from tax revenues. Second, non-tax government revenue. Thirdly, government revenue from grants. The third principle is referred to as state revenue from the tax sector and is still the largest source of revenue for state revenue. Research objectives in this paper are issues concerning taxation provisions; the application of the ultimum remedium is highly dependent on the prevailing priority scale with its main emphasis on optimizing state revenue, and not on the so-called criminal aspect; with the main reason being that the perpetrators of tax crimes should be responsible and continuously return or repair all losses incurred as a result of their mistakes. The method used is normative legal research by elaborating field data with secondary data in the form of primary, secondary and tertiary legal materials to be analyzed qualitatively. The results to be achieved in this study are willing to develop an overall understanding of tax court decisions as an ultium remedium effort for taxpayers. The application of the ultimum remedium principle directly is to increase state revenue, especially revenue in the sector.

Unexpected longevity, intergenerational policies, and fertility

This paper studies the dynamic effects of longevity on intergenerational policies and fertility, distinguishing between effects of expected and unexpected longevity gains. Old agents become poorer from unexpected longevity gains than from expected gains, as they cannot prepare (save) for the former in advance. In an overlapping-generations model with means-tested pay-as-you-go social security, we show that young agents reduce their fertility when longevity increases because they need to save more for their old age (“life-cycle effect”), and in the unexpected case, they also need to pay taxes to support the impoverished elderly (“policy effect”). Using cross-country panel data on mortality rates and social expenditure, we find that an unexpected increase in life expectancy at age 65 lowers total fertility rate growth and government family-related spending growth while raising government old-age spending growth.

Analyzing the relationship between banking finance and GDP in Iraq using the sectoral flexibilities approach for the period 2015-2021

Study Aim: This research aims to analyze the relationship between bank financing and GDP in Iraq from 2015 to 2021 using the sectoral flexibilities approach. Three variables were selected, including GDP, monetary bank credit, and the Central Bank of Iraq's initiative. The study measured the flexibility of economic sectors towards various forms of credit.Method: This study used the sectoral flexibilities approach to examine the correlation between banking finance and GDP in Iraq. It measured the flexibility of oil and non-oil GDP towards various types of credit to assess the impact of monetary credit on Iraq's GDP. Data was collected from the Central Bank of Iraq and other relevant sources, and statistical tools such as regression analysis were employed for the analysis.Main Findings: The study found that there is a clear response to monetary credit on the gross domestic product in Iraq. The flexibility of non-oil GDP towards total cash credit, government and private credit, pledge credit, cash credit granted by the sector, and the initiatives of the Central Bank of Iraq was found to be higher compared to the flexibility of oil GDP. The findings suggest that the private sector needs to be given more leeway to increase the effectiveness of its economic activity, which in turn will improve the relationship between bank financing and the domestic product. Main Recommendations: Based on the findings of the study, it is recommended that the government of Iraq provide more opportunities for the private sector to increase their participation in the economy.

Does Fiscal Deficit Cause Economic Growth? Evidence from Nepal

The fiscal deficit soared tremendously after Nepal endorsed economic liberalization aftermath of the 1990s democracy. The purpose of the paper is to investigate the effects of fiscal deficit in the economic growth of Nepal. Data from 1980 to 2019 were used to estimate the short- and long-run causal relations of fiscal deficit proxied by total government expenditure minus total government revenue as a percent of gross domestic product (GDP) and growth rate of real GDP as a proxy of economic growth along with other control variables. The autoregressive distributed lag (ARDL) error correction regression and vector error correction model (VECM) Granger causality have employed to meet the purpose of the study. The study reveals that there is short-run statistically significant negative relationship between Nepal's economic growth and the fiscal deficit of the previous year. However, both domestic and foreign loan and economic growth have positive and significant relations in short run. In contrast, the results reveal that there is positive but not significant relationship between the fiscal deficit and the economic growth of Nepal in long run. The Granger causality suggests that fiscal deficit does not Granger cause the economic growth of Nepal. However, economic growth does Granger causes the fiscal deficit in Nepal. Thus, the growth-driven fiscal deficit will be more effective in the economy of Nepal. Based on stylized facts, it will be necessary to redirect deficit financing into productive channels in order to enhance the sustainable economic growth.

Human capital and its impact on Ethiopian economic growth: ARDL approach to co-integration

Maintaining human capital at an optimal level is among the important mechanisms for ensuring steady economic growth. This study aims to examine the impact of human capital on Ethiopia’s economic growth. The study used the ARDL model applying annual data for the period 1980 to 2020. The ARDL-bound test was used to evaluate the presence of con-integration between human capital and independent variables. The study also applied the augmented Dickey-Fuller and Phillips-Perron unit root tests to check the stationarity of the variables. The test result presented that almost all variables become stationary after the first difference. Accordingly, the result from the bound test indicated the existence of a long-run relationship between the dependent variable and independent variables entered into the model. The estimated error correction model with a − 0.9528 coefficient also confirmed the existence of co-integration with a high speed of adjustment towards the long-run equilibrium. In the long-run real GDP, education expenditure, health expenditure, labor force, gross capital formation, total government expenditure, official development assistance, secondary school enrolment, consumer price index, drought, and policy change have astable long-run connection. The finding indicates an increasing ratio of health expenditure and secondary school enrollment should be designed, among others, to contain improved human capital in Ethiopia.

The Growth Effect of Government Expenditure in Jammu & Kashmir

Purpose : The paper examined the growth impact of aggregate government expenditure and its various components in Jammu & Kashmir using time series data from 1981–2020. At the disintegrated level, the study assessed the growth impact of government expenditure on three different types of services, namely, economic, social, and general. Methodology : The autoregressive distributed lag (ARDL) or bounds cointegration technique was used to explore the long-run relationship (cointegration) between total government expenditure and economic growth. The growth impact of government expenditure on economic, social, and general services was investigated using the regression model. Findings : The study found a cointegrating relationship between aggregate government expenditure and economic growth in the erstwhile state of Jammu & Kashmir. The ARDL estimates showed that total government expenditure impacted Jammu & Kashmir’s economic growth positively and significantly in the short and long run. Furthermore, the estimated regression coefficients revealed that government expenditure on social services impacted economic growth positively and significantly. In contrast, government expenditure on economic and general services had a negative but insignificant growth impact. Practical Implications : The study’s findings would assist the policymakers in prioritizing Jammu & Kashmir’s limited resources for developing sectors with the potential to raise economic growth. The study recommended that government expenditure on social services should be increased to enhance growth in the erstwhile state of Jammu & Kashmir. A compositional change in government expenditure favoring social services from general and economic services would stimulate economic growth in the former state of Jammu & Kashmir. The study’s main limitation is that the other potential growth determinants were not considered explanatory/control variables. Originality : The study provided empirical evidence of the growth effect of total government expenditure and its various types in one of India’s least developed, slow-growing, and resource-deficit states (now Union Territory). To the best of my knowledge, the growth impact of government expenditure on three different types of services (economic, social, and general) were not investigated empirically in Jammu & Kashmir for the period from 1981–2020. The study contributed to the scant empirical literature on the growth impact of government expenditure at the sub-national (state level).

Assessing non-hazardous solid waste business characteristics of Western Canadian provinces

This study addresses a gap that exists in studying waste business characteristics and the performance of a waste management system (WMS). Temporal and spatial analyses of the WMS in four Western Canadian provinces are systematically assessed over a 16-year period. The average waste business size in Canada ranged from 13.4 to 22.1 employees per business. Jurisdictions with lower disposal rates generally have larger waste companies. An average employee handled 1098 to 1426 t of waste annually. The diversion rates tended to be higher when less waste is managed per employee, suggesting total employee count may be important to improve WMS sustainability in Canada. Waste transfer costs are substantial during the study period, totaled $1276 million annually, or about 40.7% of the total government waste spending. BC only spent an average of 2.5% of the budget on operation of recycling facilities, but has the highest waste diversion rate. Expenditure distribution alone is unable to explain BC's superior waste diversion performance. Capital expenditures have been increasing from $15.7/t to $26.2/t. In this study, a business with more full-time employees correlates well with higher operating revenues. Part time workers were more predominant in SK, and may be responsible for the subpar diversion rate and operating revenue. More research is needed to determine waste business characteristics given increasing interest in circular economy and WMS efficiency.

What Factors Affect Expenditures of Goods Services For Infrastructure In Indonesia

This study identifies and analyzes the factors that influence infrastructure spending and their impact on regional economic growth in Indonesia. This study is based on cross-sectional data covering 32 provinces in Indonesia with time series 2008-2020 using multiple regression analysis models and simple regression panel data. The results of the study show that the Provincial Minimum Wage, Construction Support Workforce Growth, Regional Own Revenue and Total Provincial Government Expenditure are factors that have a significant influence on the allocation of goods/services expenditure for infrastructure. Meanwhile, the Construction Sector Workforce Growth factor and Gross Regional Domestic Product do not affect the allocation of goods/ services expenditure for infrastructure. The results of the study show that the allocation of goods/services spending for infrastructure has a significant negative effect on economic growth. When infrastructure spending increases by 1 million rupiah, economic growth will decrease by 8.58e-07 or 0.000000858%. While the implications of the results of this study should be that the central and regional governments prioritize spending on goods/services for infrastructure with programs related to reducing poverty and unemployment. Productive infrastructure development and maintaining the quality of work results.

The Brazilian Revolution of 1930: The Legacy of Getúlio Vargas Revisited

The Brazilian Revolution of 1930: The Legacy of Getúlio Vargas Revisited

BARGAINING OVER TAXES AND ENTITLEMENTS IN THE ERA OF UNEQUAL GROWTH

AbstractEntitlements have become an increasing component of total government spending in the United States over the last six decades. Using a political‐economy model where parties bargain over taxes and entitlements, we argue that such dynamics can be explained by two factors: “unequal growth,” where top earners became richer while the income of the bottom 50% stagnated, and budget rules that provide bargaining power to low‐income earners through a “status quo effect.” In a model calibrated to the United States, we show that sustained bargaining power by a party representing the poor results in a rising share of entitlements consistent with the data.

Estimation of Multiflier Effect of Public Spending on Economic Growth under Multiple Regimes Regime

The paper estimates the multiplier effect of public spending (total government spending) on economic growth (RGDP) from 44 years long time-series database of macro-economic variables from 1974-75 to 2018-19 (Panchayat Regime (1975-1990), Democracy I: Ceremonial Monarch (1991-2005) and Democracy II: Federal (2006-2019)) through structure vector auto-regressive (SVAR) model with tests. The paper provides the above three political regimes based on relationships between public spending and economic growth and the multiplier of public spending on economic growth. As a result, in the three different regimes, their nature, behavior, and dynamics are stationary. Except for real regular spending (RRS) in Democracy I: Ceremonial Monarch (1991-2005) and real capital spending (RCS) in Democracy II: Federal (2006-2019), all coefficient values of SVAR estimate shows a significantly positive relationship between the government spending and economic growth. It indicates a positive multiplier effect of public spending; recurrent spending and capital spending are positive to economic growth, except for GRRE in Democracy I: Ceremonial Monarch (1991-2005) and RCS in Democracy II: Federal (2006-2019). Likewise, in the different political regimes, higher multiplier of total public spending, regular public spending and capital public spending in the Panchayat Regime (1975-1990) are better than successive democratic regimes so-called the people’s centric political regimes: Democracy I: Ceremonial Monarch (1991-2005) and Democracy II: Federal (2006-2019). Besides, except for the Panchayat Regime (1975-1990), the multiplier value of public spending; recurrent spending, and capital spending are lower in Democracy I: Ceremonial Monarch (1991-2005) and then Democracy II: Federal (2006-2019). It indicates the low efficiency of the government spending and budgetary system. Therefore, the government should improve the efficiency of public spending, the ratio of the capital spending, and private investment for improving the higher multiplier variable in long run.

Management of chronic non-cancer pain in primary care.

Management of chronic non-cancer pain in primary care.

Analyzing the Influence of Government Education Expenditures on the Primary Completion Rate

This research paper aims to study the relationship between the total government expenditures on education and the total primary completion rate by using regression analysis. This study uses data from The World Bank database in 2016, including many different countries and regions. On average, almost 94% of students complete their primary education. The researcher hypothesizes that the amount of government expenditures on education could play a massive part in the average primary completion rate percentage being so high. It would make sense if the higher the government expenditure, the higher the completion rate. On average, government expenditures on education only amount to 15.6% of total government expenditures when further investigating this matter. If government spending plays a large part in the primary completion rate, this number would likely be much more significant. The regression used in this study included the Primary Completion Rate as the Y variable, Government Spending as the key X variable while controlling for the pupil-to-teacher ratio, and trained teachers in primary education. The full regression model included the dummy variable for the country Nauru. The model showed government spending to be negative, having no statistical significance on the primary completion rate in the first three regressions, and positive with no statistical significance in the complete regression. The results tell us that the exact opposite of what the researcher hypothesized. If government spending impacts the primary completion rate, we will suspect the regressions to be positive and have statistical significance on some conventional level.

AN ANALYSIS OF TREND AND PATTERN OF FISCAL POLICY IN NORTHEAST INDIA WITH SPECIAL REFERENCE TO ASSAM

Fiscal policy plays an important role in the development of a country. The present study aims to analyse the trend and pattern of fiscal policy variables in case of Assam in Northeast India. The study finds that all the three variables viz. total expenditure, revenue receipts and public debt showed an upward trend with slight fluctuations. From 2004-05 onwards share of revenue receipts in GSDP started to improve and it was above 15% from 2004-05 to 2019-20. Total government expenditure increased with a CAGR of 10.7% and the expenditure to GSDP ratio was more than 10% for the study period. Regarding public debt, after the implementation of the AFRBM Act in 2005, Assam maintained a debt-GSDP ratio of 28% and below as prescribed by the Twelfth Finance Commission.

ОСВІТНІ ВИМІРИ ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ НАЦІОНАЛЬНИХ ЕКОНОМІК

The article is devoted to the research of educational indicators in the system of ensuring economic security at the national level. The author proposed the methodical approach to assessing the level of the educational component in the system of economic security, which involves the following steps: the educational indicators systematization; justification of the nature of their impact on the level of economic security; calculation of the indicators system's limit values, that will allow identifying the security grades (critical, dangerous, unsatisfactory, satisfactory, safe, optimal); construction of the integral security index and calculation of its limit values; carrying out empirical calculations and analyzing the obtained results. To the system of educational indicators as measures of the economic security level, the author proposed to attribute the following: the government expenditures on education to GDP, the government expenditures on education to the total government expenditures; gross enrollment ratio in tertiary education; the Education Index as a component of the Human Development Sndex, the education development index in the structure of the Global Innovation Index, Education as a sub-pillar the Global Prosperity Index; the access to knowledge index as a component of the Social Progress Index; The Global Knowledge Index. Practical testing of the proposed approach based on a sample of EU countries and Ukraine made it possible to calculate the indices of the educational component of security and to rank countries according to its values. The highest integral ratings for the level of education development in the system of ensuring economic security were obtained for such countries as Estonia, Sweden, Latvia, Cyprus, Malta, Ukraine, Denmark, Belgium, Slovenia, and the Netherlands. It has been proven that 89 % of the EU countries can be classified according to the educational component as countries that are safe compared the rest of the world for the stability and security of economic development. Key words: education, educational indicators, economic security, index of the educational component of security, limit values of security indicators

THE RELATIVE IMPACT OF MONETARY POLICY AND FISCAL POLICY ON GROSS DOMESTIC PRODUCT IN NIGERIA

The Nigerian economy has been frontally constrained by unsteady GDP growth rates with episodes of recession, and other unimpressive socio-political and economic indices over the past three decades. The situation has become aggravated by the identifiable cases of fiscal and monetary distortions, macroeconomic shocks and gaps in our budgetary provisions that are evident in recurring deficit budgets, fiscal crises, and unsustainable debt profile. The persistence of these problems has, unarguably, impacted negatively on the overall economic performance of Nigeria, and this begs the question of the potency of the use of monetary policy and fiscal policy in addressing our targeted macroeconomic problems. Spurred by the need to finding policy solutions to these problems, this study empirically examines the relative impact of fiscal policy and monetary policy in stimulating gross domestic product in Nigeria. The achieve the study objectives, annual time series secondary data spanning from 1983 to 2021 were empirically analyzed using Autoregressive Distributed Lag (ARDL) estimation after the unit root text revealed a mixed order of integration. The result of the long and short run dynamics revealed that Total Government Expenditure (TOGE) has a positive and statistically significant relationship with GDP in Nigeria. Also, Broad Money Supply (MPMS) and Open Market Operations (MPOM) have positive and statistically significant relationships with GDP within the study period. The study concludes that in the short and long run, monetary policy and fiscal policy play significant roles in stimulating GDP growth in Nigeria. However, in relative terms, fiscal policy is more potent than monetary policy in Nigeria within the review period. The study, therefore, recommends that for the attainment of macroeconomic goals and sustainable economic development effective coordination of monetary and fiscal policy tools should be encouraged for consolidated socio-political and economic gains.