How to Use Oil Revenues Efficiently

2019 ◽  
pp. 218-236 ◽  
Author(s):  
Shantayanan Devarajan
Keyword(s):  
Public Sector ◽  
Public Expenditure ◽  
Public Spending ◽  
Public Expenditures ◽  
Value For Money ◽  
Tax Revenues ◽  
Global Events ◽  
The Government ◽  
Oil Revenues ◽  
Rich Countries

Oil-rich countries systematically misallocate public expenditures relative to non-oil countries—by favoring consumption over capital, and within consumption, inefficient subsidies and public sector wages over targeted transfers. Furthermore, for given levels of expenditure, value for money is considerably less in oil-rich countries. This chapter argues that the reason for this inefficiency is that oil revenues go directly to the government without passing through the hands of the citizens, as is the case with tax revenues. As a result, governments in oil countries are less accountable for public expenditure, which leads to inefficient spending. To improve public spending efficiency, we propose that all oil revenues be distributed directly to citizens, and the resources that government needs be raised through taxation. We show that such a scheme improves the efficiency of public spending. We consider possible obstacles to such a reform and show that they have been overcome by technology, politics, and global events.

scholarly journals The impact of public expenditures on economic growth of the Republic of North Macedonia

2020 ◽  
Vol 8 ◽  
pp. 249-258
Author(s):  
Aleksandar Nikoloski
Keyword(s):  
Economic Growth ◽  
Public Expenditure ◽  
Public Spending ◽  
Living Standards ◽  
Living Standard ◽  
Public Expenditures ◽  
Short Term ◽  
The Republic ◽  
Sustainable Economic Growth ◽  
The Impact

Ensuring high and sustainable economic growth is one of the main tasks of public spending policy. In fact, public expenditure plays an important role in the formation of physical and human capital over time. If are properly targeted, they can stimulate economic growth even in the short term, when limited infrastructure of (unskilled) workforce is a barrier to increased production. Therefore, the realized impact of public expenditures on economic growth can be considered as an indicator of their effectiveness. The goal of public expenditure is to increase economic growth by providing more employment opportunities, increasing people's income and living standards. Therefore, if they are well-managed, they can lead to the desired level of economic growth and improvement of the living standard of the population.

scholarly journals Gasto público, permanencia en el poder y crecimiento económico

2020 ◽  
Vol 30 (1) ◽  
pp. 363
Author(s):  
Juan Marroquín Arreola ◽  
Humberto Ríos Bolívar
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Public Expenditure ◽  
Growth Models ◽  
Public Spending ◽  
The Political ◽  
The Government

The aim of this paper is to analyze how the government determines the proportion of public spending to maximize its political benefit and stay in power. Using growth models and making modifications in them, this study demonstrates that the actions of public expenditure and growth rate are determined by the parameters of political gain. Also, the results of the simulations show that if the political gain of distribution policy is high, the government will allocate a greater share of the fund for purposes of distribution adversely affecting economic growth.

Sweden’s Public Sector Crisis, Before and After the 1982 Elections

1983 ◽  
Vol 18 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Peter Walters
Keyword(s):  
Budget Deficit ◽  
Public Expenditure ◽  
Public Spending ◽  
Industrialized Countries ◽  
Before And After ◽  
Socialist Government ◽  
Oil Shock ◽  
The Face ◽  
The Government ◽  
The Welfare State

‘WHEN THE SWEDES BEAT A RETREAT FROM KEYNES THAT surely signals a climacteric.’ Thus Andrew Shonfield clinched his argument that the unwillingness of the industrialized countries to offset the deflationary consequences of the 1979 oil shock reflected a general crisis of confidence in the principles of the mixed economy. The loss of Keynesian innocence in the 1970s came to different countries in different ways. In Sweden it came comparatively late and abruptly when, in 1980, after six years in which public expenditure had grown from 46 per cent to 64 per cent of GDP, the coalition non-socialist government acknowledged that the budget deficit, amounting to 10 per cent of GDP, had reached crisis proportions. From 1980 the problem of curbing the recalcitrant deficit became a corner-stone of the non-socialists’ economic policy. Eschewing any increase in the tax-burden, which it was committed to reduce, the government launched a comprehensive attack on public spending. Its persistence on this course in the face of protests that it was eroding the welfare state and tolerating rising unemployment was a major factor in its defeat in the general election of September 1982.

scholarly journals HOW SHOULD THE GOVERNMENT ALLOCATE ITS TAX REVENUES BETWEEN PRODUCTIVITY-ENHANCING AND UTILITY-ENHANCING PUBLIC GOODS?

2010 ◽  
Vol 15 (3) ◽  
pp. 336-364 ◽  
Author(s):  
George Economides ◽  
Hyun Park ◽  
Apostolis Philippopoulos
Keyword(s):  
Public Goods ◽  
Optimal Policy ◽  
Public Expenditures ◽  
Tax Rate ◽  
Second Best ◽  
Goods And Services ◽  
Tax Revenues ◽  
The Social ◽  
The Government ◽  
Macroeconomic Implications

We present a fairly standard general equilibrium model of endogenous growth with productive and nonproductive public goods and services. The former enhance private productivity and the latter private utility. We study Ramsey second-best optimal policy, where the latter is summarized by the paths of the income tax rate and the allocation of collected tax revenues between productivity-enhancing and utility-enhancing public expenditures. We show that the properties and macroeconomic implications of the second-best optimal policy (a) are different from the benchmark case of the social planner's first-best allocation and (b) depend crucially on whether public goods and services are subject to congestion.

scholarly journals Public Expenditures Priorities between Human Development Requirements and Funding Constraints

Webology ◽  
2021 ◽  
Vol 18 (2) ◽  
pp. 1224-1235
Author(s):  
Dr. Dhiaa Hussein Saud ◽  
Dr. Mazen Dawood Salman ◽  
Dr. Amro Hisham Mohammed
Keyword(s):  
Human Development ◽  
Global Economy ◽  
Public Expenditure ◽  
Public Spending ◽  
Federal Budget ◽  
Public Expenditures ◽  
Economic Sectors ◽  
The Public ◽  
Oil Markets ◽  
Public Money

Interest in the issue of public Expenditures (spending) priorities increases in times of financial and economic crisis, when restrictions on government funding grow, and financial markets stumble in providing financing channels with the necessary liquidity, as well as when paying attention to increasing the efficiency and productivity of public spending, by reducing the waste of public money and pursuing its allocation between different economic sectors to achieve the public benefit as much as possible and at the lowest possible cost. Among the discussions being raised in this regard is where the priority lies in spending is on sectors that support human development such as (education, health and public services), or the priority of spending on other sectors (which may hinder human development and delay the development of states and civil societies) such as military sectors, armaments, military industries and related sectors. Because each side has its arguments and evidence of modern economic and human experiences, it is difficult to resolve the controversy in a certain direction and ignore the opinion of the second party, but what concerns us is the situation of our country and our society and the economic and social pressures and renewed threats from time to time, and what is the most objective and credible reading of the authors of the philosophy of the Iraqi economy, and its emerging priorities developed after 2003, through the trends of the federal budget in this country. Given the financial crisis that is ravaging the global economy as a result of the Corona pandemic and the great isolation measures Great Lockdown and the repercussions of this crisis on the Iraqi economy as a result of the collapse of the world oil markets, so discussions are escalating in the field of rationalization and efficiency of government public spending, and because the general budget depends on the general revenues on oil revenues by more than 90% in most years after 2003, so an external shock or collapse in the oil market affects the revenues of the general budget, and therefore there is a situation The uncertainty of budget planners and implementers in collecting the revenues required to cover the public expenditure side, and the most important items of governing public expenditure, namely employee compensation, support for the poor and others.

scholarly journals The Priority of Exploiting Fiscal Revenue or Lessening Public Expenditure: Evidence from China

2020 ◽  
Vol 6 (1) ◽  
pp. 54
Author(s):  
Yu kun Wang ◽  
Li Zhang ◽  
We-me Ho
Keyword(s):  
Public Sector ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
Public Expenditure ◽  
Positive Impact ◽  
Fiscal Deficit ◽  
The Past ◽  
Fiscal Revenue ◽  
Fiscal Expenditure ◽  
The Government

In the past 28 years, we find that except for the fiscal revenue of 5,132.1 billion yuan in 2007, which is greater than the fiscal expenditure of 4,978.1 billion yuan, presenting a fiscal surplus, the fiscal expenditure of the rest years is greater than the fiscal revenue, showing the situation of public sector net cash requirement (psncr), especially in 2011, the deficit( the gap between fiscal expenditure and fiscal revenue) is 537.3 billion yuan. Since then, the gap between expenditure and revenue has been increasing with each passing year. In 2015, the fiscal deficit is 2,368 billion yuan. In 2018, the fiscal deficit has been expanded to 3,754.4 billion yuan. In order to avoid the continuous increment of the deficit. This paper discusses the causal relationship between China's fiscal revenue and public expenditure from 1990 to 2018. If fiscal revenue has a positive impact on public expenditure, showing that the government shall reduce fiscal deficit through tax increment. On the contrary, it makes public expenditure continue to expand, leading to the continuous deterioration of fiscal deficit, so as to further decide whether China's future fiscal policy should adopt increasing fiscal revenue or deducting public expenditure policy to reduce the deficit.

Public Expenditure: Policy and Control

1979 ◽  
Vol 90 ◽  
pp. 68-76 ◽  
Author(s):  
R.W.R. Price
Keyword(s):  
Public Sector ◽  
Public Expenditure ◽  
Government Intervention ◽  
Public Spending ◽  
Financial Control ◽  
State Spending ◽  
The Public ◽  
Economic Background ◽  
And Control

The present government came to office with a commitment to cut state spending while reducing government intervention in the economy and extending the sphere of private choice through tax reductions. This philosophy, while of significance for the longerterm development of the public sector, is actually of limited use in explaining the 1979 public expenditure reductions. These stem from one of the recurrent crises of financial control which have afflicted public spending plans in the last decade and a half. The purpose of this article is to analyse the financial and economic background to the cuts, which, it is argued, would have called for programme adjustments whatever administration had been in office, though the type of reductions made may bear the imprint of different political philosophies.

Pressure grows on Ecuador's Correa as oil price bites

2015 ◽  
Keyword(s):  
Public Expenditure ◽  
Public Spending ◽  
Business Community ◽  
Content Type ◽  
Media Regulation ◽  
Oil Revenue ◽  
Public Media ◽  
State And Society ◽  
International Investors ◽  
The Government

Significance Tensions between the state and society have increased following the fall of world oil prices. Less oil revenue has forced the government to attempt to raise taxes on households and businesses to sustain public expenditure, generating conflict with the upper-middle class, traditional elites and the business community. The conflict is particularly problematic for the government as opposition from social movements is also strengthening. Impacts The government will continue to use public media outlets, media regulation and state propaganda to weaken opposition. Maintaining high levels of public spending will be crucial for Correa in the build-up to elections. The government will come under increasing pressure from international investors and multilateral organisations to improve public finances.

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

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Adel Kashkool ◽  
Roa'a Mohammed Kadhim ◽  
Hasan Yahya Baqer
Keyword(s):  
Public Spending ◽  
Public Expenditures ◽  
Annual Data ◽  
Quarterly Data ◽  
The Public ◽  
Close Relationship ◽  
Homogeneity Of Variance ◽  
Oil Revenues ◽  
The Impact

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.

scholarly journals Public expenditure and growth: the Indian case

2020 ◽  
pp. 1-25
Author(s):  
A. Bhatt Hakhu ◽  
C. Sardoni
Keyword(s):  
Public Debt ◽  
Public Expenditure ◽  
Public Spending ◽  
Debt Ratio ◽  
The Public ◽  
Long Run ◽  
The Government ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Results

The paper deals with the relationship between public spending and growth as well as the dynamics of the ratio of public debt to GDP. The authors show that a composition of public spending that favors productive expenditures, that is, those with a direct positive effect on the economy's long-run rate of growth, can determine a situation in which the ratio of public debt to GDP is stable, even though the government runs primary deficits. We test our theoretical results by considering the Indian case. Our empirical analysis substantially supports the idea that the dynamics of the economy as well as of the public-debt ratio are contingent on having a public sector that favors productive expenditures.

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