Public spending

This paper looks into fiscal consolidation in India's heartland states of Madhya Pradesh and Chhattisgarh following their separation from 2001 to 2019. The study examines the trends in states' budget deficits, public spending, debt, and revenue collection to meet FRBMA, 2003 fiscal targets. According to the analysis, both states achieved fiscal consolidation after an initial hiccup during the period. The states adhered to the fiscal targets established by the FRBM Act of 2003 and various finance commissions. In Madhya Pradesh and Chhattisgarh, the gap between revenue receipts and revenue expenditure has narrowed. The percentage of interest payments deducted from revenue has also been reduced. Madhya Pradesh and Chhattisgarh are backward states, despite their above-average economic growth. The deficit and debt levels and the states' interest payments have increased later in the study period. The States must generate revenue through legislative non-GST taxes and other non-tax sources.

The purpose of this paper is to empirically analyse the revenue-expenditure models of public finance by considering the possibility of non-linear and asymmetric adjustment. A long-run relationship between general government expenditure and revenues is identified for Italy. Following system-wide shocks, the estimated relationship adjusts slowly to equilibrium, mainly due to complex administrative procedures that add to the sluggishness of tax collection and undermine the effective monitoring of public spending. Exogeneity of public expenditure implies that taxes rather than spending, carry the burden of short-run adjustment to correct budgetary disequilibria. Allowing for non-linear adjustment and the possibility of multiple equilibria, our findings show evidence of asymmetric adjustment around a unique equilibrium. In particular, we find that when government expenditure is too high, adjustment of taxes takes places at a faster rate than when it is too low. Further, there is evidence of a faster adjustment when deviations from the equilibrium level get larger, pointing to a Leviathan-style, revenue-maximiser government.

Tax evasion is a widespread phenomenon and encouraging tax compliance is an important and much debated policy issue. Many studies have shown that tax cheating has to be attributed to a considerable extent to the tax morale of taxpayers. The aim of the present paper is to shed light on the relationship between the taxpayer and the public sector. Specifically, we investigate whether public spending inefficiency shapes individual tax morale. Combining data from Italian municipalities' balance sheets with individual data from a properly designed survey on tax morale, we find that the attitude towards paying taxes is better when resources are spent more efficiently. This does not appear to be due to some confounding factors at the municipality level or to spatial sorting of citizens. It is also robust to alternative measures of both inefficiency and tax morale.

This paper explores the choices faced by developing country governments that have received substantial revenues from natural resources. The economic principles underlying the choices between consumption, domestic investment, and the accumulation of foreign assets are analysed. The priority should be to use revenues to promote growth and investment in the domestic economy and thereby put consumption on a rapid growth path, although absorptive capacity may constrain the scope for doing this in the short run. Foreign asset accumulation should be used primarily to smooth volatility, rather than to build up a long-term sovereign wealth fund. Trade-offs between private and public spending channels are examined from both an economic and political economy standpoint.

This paper investigates the effect of public spending on health and welfare on total, male and female suicide rates using panel data for U.S. states over the time period 1982-1997. We show that the share of health and welfare in total public spending are strong predictors of suicide rates and yield estimated coefficients that are both statistically significant and economically meaningful. In parsimonious specifications, we also find that suicide rates are systematically higher in states with higher divorce rates, but average income level, income inequality and unemployment rates do not have a robust impact on suicide. The model provides a better fit to male than to female suicide data. Our main results hold up to a series of specification tests.

Increasing private wildfire risk mitigation is an important part of the larger forest restoration policy challenge. Data from an economic experiment are used to evaluate the effectiveness of providing fuel treatments on public land adjacent to private land to induce private wildfire risk mitigation. Results show evidence of "crowding out"

Openness has become an important method in public financial management and governing system. The governments that seeking to be accountable towards their citizens needs to promote their system through transparency and public participation. The governing system in Turkey under the rule of AKP has significantly changed in the last decade particularly in public financial management. This paper aims to evaluate the extent of Turkish government openness in public expenditure. It also intends to study the influence of civic society organizations and governing bodies that representing public in auditing government spending. The study found that Turkey was not successful in promoting transparency and public participation in government spending and little evidence has found to indicate major changes in Military expenditure. Therefore, some works has been done to promote current system in order to make it more open, but the way is still far to achieve complete transparency. This paper also highlighted significant role of civic society and government auditing bodies in preventing opacity and corruption and become a watchdog on the government spending

This study analysed the relationship between public spending and economic growth in Nigeria. The study used the secondary data from CBN Statistical Bulletin from 2004 – 2018. The Real Gross Domestic Product formed the dependent variable and the independent variable of interest were the Capital Expenditure on Economic Services, and Expenditure of Transfers. The variables were validated by conducting the unit root test using the Augmented Dickey Fuller (ADF) and Phillips Perron Test (PP), and the correlation coefficient were determined using STATA and the Pearson Product Moment Correlation. A multiple regression model was employed for the study and was analysed using the Generalized Least Squares (GLSs) with the aid of Eviews 11 statistical program. The results of the study indicated that Capital Expenditure on Economic Services has a positive and significant impact on Economic Growth while Expenditure on Transfer has a negative and insignificant impact on Economic Growth. The study r...

Borxhi eshte thjesht nje simptome. Shkaku i vertete i borxhit jane nevoja apo deshira e qeverive per te shpenzuar me shume se te ardhurat qe " krijojne " – jane shpenzimet qe mund te vleresohen si te mira apo te keqija. Borxhi eshte nje shenje besimi tek e ardhmja. Ai, individi apo qeveria, qe kerkon borxh ka besim tek ideja qe kerkon te financoje; ai qe te jep borxh ka besim tek ideja jote dhe beson se do marre parate mbrapsht me interes. Fillimi i perdorimit te borxhit publik (kredimarrjes) ne shekullin e 15 i dha hov ekonomise boterore dhe zhvillimit te njerezimit. Por, shperdorimi i besimit mund te sjelle shkaterrim. Borxhi i marre disa dekada rresht e falimentoi Greqine ne vitin 2015, me efekte mjaft te renda tek qytetaret e cdo shtrese dhe moshe. Prandaj, jam dakord qe ta perkufizoj borxhin si nje force nukleare. Nese perdoret sic duhet, behet nje burim energjie per ekonomine dhe mireqenien e njerezve. Ne te kunderten, shkreton ekonomine dhe njerezit.

Urbanization phenomenon has been widely discussed recently with the regard to the rapid growth of world population. The relative importance of fiscal variables among the others, affected by urbanization has come into prominence as a consequence of expanding government sizes in world economies. In this context, we aim to examine the impact of urbanization on the government expenditure indicating the government size by the means of static and dynamic panel data analysis over the 1990-2012 period for 44 developing countries. Keywords: urbanization, government expenditure, panel data analysis An Empirical Overview on the Urbanization and Government Expenditure Policies in Developing Countries Kentleşme olgusu dünya nüfusundaki hızlı artışa bağlı olarak son yıllarda sıklıkla tartışılan bir konudur. Kentleşmenin etkilediği çok sayıda değişken içerisinde mali değişkenlerin göreli önemi dünya ekonomilerinde kamu hacmindeki artışa bağlı olarak ön plana çıkmaktadır. Bu çerçevede çalışmamızın amacı, kentleşmenin kamu büyüklüğünün bir göstergesi olarak kamu harcamaları üzerindeki etkisinin statik ve dinamik panel veri analizi yöntemleriyle 44 gelişmekte olan ülke açısından 1990-2012 dönem aralığı için ampirik olarak incelenmesidir. Anahtar Kelimeler: kentleşme, kamu harcamaları, panel veri analizi

Noting that the literature has focused on the link between the level of public expendi ture and growth, we derive conditions under which a change in the composition of expenditure leads to a higher steady-state growth rate of the economy. The conditions depend not just on the physical productivity of the different components of public expenditure but also on the initial shares. Using data from 43 developing countries over 20 years we show that an increase in the share of current expenditure has positive and statistically significant growth effects. By contrast, the relationship between the capital component of public expenditure and per-capita growth is negative. Thus, seemingly productive expenditures, when used in excess, could become unproductive. These results imply that developing-country governments have been misallocating public expenditures in favor of capital expenditures at the expense of current expenditures.

This study aims to analyze the effect of government spending on healthcare on health outcomes with cross-national comparison. We run crosssectional regressions to estimate the strength of association between child and infant mortality rate and public health expenditures in worldwide sample. We find statistically significant and robust results by various specifications. We found government health spending as a share of GDP is negatively associated with lower level of under-5 mortality by elasticities of from -0.17 to -0.22. The elasticity is -0.20 for infant mortality. When government spending as a share total health expenditures is used as estimator, elasticities are -0.33 for under-5 mortality and -0.23 and -.0.32 for infant mortality. We also found significant and negative coefficient a number of socio-political determinants such as the law and order, education level, population as well as income level as a main determinant. Compared to previous studies, we found the income level to be slightly less significant and the public health spending to be slightly more significant empirically.

Notices 1 Effective January 2007, the Discussion Paper series within each division and the Director General's Office of IFPRI were merged into one IFPRI-wide Discussion Paper series. The new series begins with number 00689, reflecting the prior publication of 688 discussion papers within the dispersed series. The earlier series are available on IFPRI's website at www.ifpri.org/pubs/otherpubs.htm#dp.

This paper discusses problems with the prevalent view that public resources for education in developing countries should be reallocated from higher to lower levels of education. There may be a case for maintaining and even increasing spending on higher education, as long as public funds can be directed to research and other "public good" functions of institutions of higher education. Current measures of social returns to primary, secondary and higher education do not reflect unmeasured social benefits at each level; since we do not know the relative size of these benefits across levels, we do not know the true ranking of social returns across primary, secondary and higher education. The true social rate of return to certain components of higher education, such as research and postgraduate training in science and technology, and creation of other skills where social returns probably exceed private returns (such as public administration) is probably high, and in some settings, may now be as high or higher than the social rate of return to primary and secondary education. Moreover, achieving and sustaining adequate levels of quality to capture these social returns requires minimal stability in public financing, arguing against major reallocations away from higher education. But this does not argue for more public spending on all higher education programs. On the contrary; within the envelope of total public spending on higher education, reallocation away from public spending on undergraduate training makes sense, since such training probably has low social compared to private returns, and can be accomplished by greater reliance on private universities and by increasing tuition and other fees in public universities, while ensuring equitable access through loan and scholarship programs. [JEL I28]

While public spending on sports facilities has been staggering, this economic development strategy is rife with inadequate information on major issues relating to these projects. Decision makers often have a limited understanding of the real costs and benefits of sports facilities. This incomplete understanding often leads to unforeseen public expenditures at levels far above those originally budgeted for a project. Unlike most of the literature on sports facilities, this paper does not begin with the premise that sports facilities are poor investments, nor does it espouse the view that these investments provide benefits that far outweigh project costs. Instead, this paper assumes that decision makers require a baseline of information available to them when considering this approach to economic development. This baseline of information includes 1) a broad understanding of existing literature on sports facilities and economic development and 2) an awareness of the full range of costs and benefits of these projects.

Using a panel of Major League Baseball team attendance data for the period 1950-2003, we determine that after controlling for team quality and other factors, a new modern era ballpark adds 27-36% to total attendance over a ten-year period and on average generates present-value stadium revenues of $133 million for the franchise. We further find that due to noncomplementarity between new stadiums and team success, team profits are maximized when an owner "pockets" increases in revenue rather than reinvesting in the on-field quality of the team.

In a knowledge-intensive world driven by information technology, primary education is a must but the importance of higher education cannot be ignored. This current era of globalization has offered immense opportunities. But people must have the necessary knowledge, skills, capacities and capabilities to seize those opportunities. Herein lays the role of education and especially higher education in building up and improving human capital. Since the economic growth of India in recent years is driven primarily by services sector and within services sector by IT and ITES the sustainable development of higher education is not an option but imperative. In this light, the paper raises the following questions: Where does India's higher education stand today? What are the challenges confronting this sector? And what are proposed reform measures in this sector? The paper concludes that there is a serious mismatch between demand and supply in higher education sector. It is imperative therefore to enhance Indian talent pool by reforming higher education system to maximize the potential of IT and ITES on the one hand and to catalyze the country's growth driven by services sector on the other. The expansion of the higher education sector and improvement in its quality can assist India in avoiding the unemployability of graduates on the one hand and the phenomenon of 'missing teachers' on the other. In addition it can ensure inclusive growth by making higher education accessible and affordable. India's Eleventh Five Year Plan is aiming at enhancing public spending, encouraging private initiatives and initiating long major institutional and policy reforms to bring about positive changes in India's education system. The outcomes will depend upon political commitment and good governance.

The government budget is a key instrument for PRSP implementation. In most PRSP countries fiscal space has been growing in recent years due to increased domestic resource mobilization, external debt reduction and rising ODA inflows. But large financing gaps prevail and clearly show that resource allocation must be made more effective. Empirical and theoretical economic research has largely failed to provide the basis for results oriented allocation decisions which are complicated by many factors including time lags, complementarities and institutional quality. The prevailing approach in budgeting largely relies on prioritizing 'pro-poor' components of public spending. However, since the underlying criteria are simplistic and poorly specified, it is questionable if the prevailing approach actually increases the effectiveness of public spending in terms of reducing poverty.

The purpose of this paper is to investigate the effects of public spending on economic growth and examine the sources of economic growth in developed countries since the 1990s. This paper analyses whether public spending effect on economic growth based on Cobb-Douglas Production Function with the two econometric models with Autoregressive Distributed Lag (ARDL) and Dynamic Fixed Effect (DFE) for 21 developed countries (high-income OECD countries), over the period 1990 – 2013. In comparison to similar empirical studies, our paper will add to the existing literature by extending the sample of developed countries and providing the latest empirical evidence for non-linear and structural breaks. Our model results are parallel to each other and the models support that public spending has an important role for economic growth. This result is accurate with theories and previous empirical studies.

The nationalization of industry and education in the early 1970s resulted in the deterioration of private sector with minimal investment in this field. This continued into late 90s with Pakistan recording comparatively low public spending on education as a percentage of GDP 1 . Thus the government of Pakistan, in an effort to enhance intellectual capital and enrollments, established the Higher Education Commission (HEC) assigned to evaluate, improve and promote the higher education and research culture in both public and private sectors in Pakistan. Since its establishment in 2002, the HEC has "undertaken a systematic process of implementation of the five-year agenda for reform outlined in the HEC Medium Term Development Framework (MTDF) 2 . Thus, with the inception of HEC, the number of private sector universities has surged from 25 (2001) to 53 (2010) 3 and the private sector enrolments in higher education institutions increased from 43,873 a 15.8% of the total enrolment of 276,274 (2001) to 115,369 a 14% of the total enrolment which is 803,507(2009) 4 .

When designing a national public procurement system, the degree of centralization (or, equivalently, the degree of demand aggregation) is one of the most crucial as well as puzzling policy choices. Centralized procurement has been traditionally considered as an instrument to reduce public spending. In more recent years, though, and particularly after the 2008 global financial turmoil, a growing interest has arisen among both policy makers and researchers in government procurement as a lever to pursue broader policy goals, such as competitive markets structure, sustainable development and innovation. This paper reviews and discusses several issues related both to the rationales and to the practical implementation of centralized procurement strategies, with a particular focus on the procurement of goods and services.

This paper decomposes public spending and revenues into various subcategories and estimates the impact of each of them on economic growth. The results provide some support for theoretical models of endogenous growth. Specifically, the main findings are: a) public expenditures on infrastructure (economic affairs and general public services) exert a positive impact on growth; b) government outlays on property rights protection (defense, public order-safety) have a positive effect on per capita growth; c) distortionary taxation depresses growth; d) government expenditures on human capital enhancing activities (education, health, housing-community amenities, environment protection, recreation-culture-religion) and social protection do not have a significant effect on per capita growth. These findings are robust to changes in specification and estimation methodology.

In this paper we estimated the demand for local public spending for the Brazilian municipalities within a median voter´s framework. The median voter theorem provides a method of aggregating individual voter`s demands to obtain community demand. The rationale for applying that framework came from the fact that in federal systems voter´s preferences are more likely to be reflected at the

The 30 OECD member countries have very diverse pension systems. Current old-age public pension spending varies between less than 1 and more than 10 per cent of gross domestic product (GDP). Public spending on pensions per person aged 65 or over varies from less than 15 to more than 40 per cent of economy-wide GDP per head. For workers entering the labour market today, the target pension from all mandatory sources for an average earner varies between 30 and 100 per cent of individual earnings. Recent pension reforms have a number of common themes. First, pension eligibility conditions have been tightened. Second, the indexation of pensions in payment has become less generous. Third, some pension schemes link benefit levels to changes in life expectancy. Finally, a number of countries have introduced defined-contribution pensions: privately managed schemes where the pension benefit depends on contributions and investment returns. We would like to thank Monika Queisser and Nicholas Barr for their comments, and two anonymous referees. The views expressed are our own, not those of the OECD Secretariat or member governments.

Understanding institutional systems is critical for the advancement of women's participation in leadership in varying contexts. A unique and global analysis of the contextual factors that affect women in political leadership, this paper extends prior research in the field. This is a cross-country study where we ask, "How are societal-level institutional forces related to women's participation in political leadership?" We collected data from 8 secondary sources on 181 countries and conducted linear regression analyses with six institutional influences: the business environment, societal development, the economic environment, physical and technological infrastructure, political freedom, and culture. Results indicate that to increase the political leadership participation of women, we need to evaluate the following: customs and trade regulations, graft, the gender gap in political empowerment, public spending on education, the economic viability of the country, access to power and the internet, political freedom, and cultural variables like performance orientation, collectivism, and power distance.

L’acritico primato che l’azione diretta della “mano pubblica, espressione “alta e pura” dell’interesse collettivo, ha avuto nell’immaginario collettivo nazionale ha, per molti anni, limitato fortemente l’analisi delle performance che la spesa pubblica e l’organizzazione stessa della Pubblica Amministrazione hanno nell’erogazione dei servizi e nell’accrescimento della dotazione infrastrutturale, materiale e immateriale del paese. Proprio questa debole enfasi sulla quantificazione, l’analisi e il monitoraggio continuo delle performance della P.A. è da tempo una delle concause della limitata produttività della spesa pubblica ovvero del ridotto effetto di moltiplicazione da questa indotta sul PIL nazionale che, a sua volta, è uno dei determinanti di una crescita stagnante, da oltre 12 anni, malgrado la mole consistente di risorse drenate dal sistema impositivo e impiegate nella PA allargata. Tale elemento, unito alla “bulimia” di un settore pubblico che ha, frequentemente, invaso campi potenzialmente interessanti anche per il settore privato, spesso per motivi di carattere prettamente politico nell’accezione di De Gasperi , rende oggi ineludibile un profondo ripensamento dei modelli di erogazione dei servizi pubblici. Infatti, al settimo anno di una crisi che appare sempre meno transitoria e sempre più paradigmatica, il ridisegno dei processi della P.A. va ben oltre al “semplice” tema della spending review, intesa come taglio dei costi, per entrare nettamente nel territorio del performance management dell’amministrazione pubblica.
In questo scenario, in cui il settore pubblico è stato sinora interessato da tagli più o meno lineari che, in uno con una poco lungimirante applicazione del Patto di Stabilità, hanno inciso fortemente sulla capacità d’investimento della P.A. (si stima che dal 2003 la dotazione di risorse a supporto delle infrastrutture materiali ed immateriali si sia ridotta del 73%) e sulla sua spesa in conto capitale ma senza riuscire ad incidere granché sugli aggregati di fondo della spesa pubblica, gli strumenti del Partenariato Pubblico Privato (PPP), e in primis il Project Financing (PF), vengono visti sempre più come “the only game in town” per risolvere il rebus del bilanciamento tra scarsità di risorse, necessità di ripresa degli investimenti pubblici e domanda di fattività e qualità dell’azione pubblica da parte dei cittadini.
Nella prospettiva delineata, il PPP, per le note regole di contabilizzazione dettate da Eurostat nel 2004 che rendono ammissibile l’esclusione dal Patto di Stabilità delle spese a questo relative, sta assumendo un ruolo sempre più centrale nell’arsenale a disposizione della P.A. per incidere sul contesto di riferimento. In tal senso, oltre ad un utilizzo tattico, connesso al superamento dei vincoli di finanza pubblica, per questi strumenti si apre anche una prospettiva maggiormente strategica di utilizzo da parte dell’amministratore pubblico con il fine di promuovere interventi materiali ed immateriali utili alla modernizzazione del paese e alla crescita delle performance del settore pubblico e dei servizi da questo offerti.
In particolare, la possibilità di utilizzare il PF anche nel campo delle infrastrutture immateriali, in primis quelle fondamentali per lo sviluppo di servizi che utilizzano massicciamente le innovazioni dell’economia digitale, e, più in generale nel campo dei servizi pubblici e di interesse collettivo, apre un interessante prospettiva di “cambio di passo” nei processi di evoluzione della P.A.
L’introduzione, quindi, della disciplina del project financing di servizi, ovvero dello svolgimento di un servizio pubblico mediante concessione, ammissibile dall’8 giugno 2011 con l’entrata in vigore dell’art 278 del DPR 207/2010, dischiude nuovi ambiti di collaborazione tra pubblico e privato potenzialmente forieri di consistenti innovazioni e di una rilevante crescita di performance nel campo dei servizi pubblici.

We use a calibrated multi-sector DSGE model to analyze the likely impact of oil windfalls on the Ghanaian economy, under alternative fiscal and monetary policy responses. We distinguish between the short-run impact, associated with demand-related pressures, and the medium run impact on competitiveness and growth. The impact on inflation and the real exchange rate could be moderate, especially if the fiscal authorities smooth oil-related spending or increase public spending's import content. However, a policy mix that results in both a fiscal expansion and the simultaneous accumulation of the foreign currency proceeds from oil as international reserves-to offset the real appreciation-would raise demand pressures and crowd-out the private sector. In the medium term, the negative impact on competitiveness-resulting from "Dutch Disease" effects-could be small, provided public spending increases the stock of productive public capital. These findings highlight the role of different policy responses, and their interaction, for the macroeconomic impact of oil proceeds.

The study used error correction model to investigate the effect of public spending (recurrent and capital) on inflation in Nigeria during the period 1980-2006. The result shows that most lags of recurrent expenditure exerts positive and significant influence on inflation. This implies that, the higher the recurrent expenditure, the higher the inflation. In the light of these findings, the researcher recommends that recurrent and capital expenditures as a fiscal policy tool should be accompanied with monetary policy geared at curbing inflation.

Why has the macroeconomic impact of foreign aid seemingly been so poor? Is there a relationship between the widespread level of corruption and other types of rent-seeking activities and concessional assistance? To answer these questions we provide a simple game-theoretic rent-seeking model. The model has a number of implications. First, under certain circumstances, an increase in government revenue lowers the provision of public goods. Second, the mere expectation of aid may suffice to increase rent dissipation and reduce productive public spending. This result may be reversed, however, if the donor community can enter into a binding policy commitment. We also provide some preliminary empirical evidence in support of the hypothesis that foreign aid and windfalls are on average associated with higher corruption in countries more likely to suffer from competing social groups. We find no evidence that the donors systematically allocate aid to countries with less corruption.