scholarly journals A quantitative analysis of sources of changes in government expenditures on health, 2000 to 2015: what can we learn from experience to date?

2021 ◽  
Vol 3 ◽  
pp. 5
Author(s):  
Helen Saxenian ◽  
Ipchita Bharali ◽  
Osondu Ogbuoji ◽  
Gavin Yamey

Background: Achieving universal health coverage (UHC) requires increased domestic financing of health by low-income countries (LICs) and middle-income countries (MICs). It is critical to understand how much governments have devoted to health from domestic sources and how much growth might be realistic over time. Methods: Using data from WHO’s Global Health Expenditure Database, we examined how the composition of current health expenditure changed by financing source and the sources of growth in health expenditures from 2000-2015 across different income groups. We disaggregated how much growth in government expenditures on health from domestic sources was due to economic growth, growth in government spending as a share of GDP, and reallocations in government expenditures towards health. Results: Lower MICs (LMICs) and upper MICs (UMICs), as a group, saw a significant reduction in out-of-pocket expenditures and a significant growth in government expenditures on health from domestic sources as a share of current health expenditures over the period. This trend indicates likely progress in the pathway to UHC. For LICs, these trends were more muted. Growth in government expenditure on health from domestic sources was driven primarily by economic growth in LICs, LMICs, and UMICs. Growth in government expenditure on health due to increased government spending as a share of GDP was high in UMICs. For the high-income country group, where economic growth was relatively slower and government spending was already high with strong tax bases, the largest driver of growth in government expenditure on health from domestic sources was reallocation of the government budget towards health. Conclusions: Dialogue on domestic resource mobilization needs to emphasize overall economic growth and growth in the government spending as a share of GDP as well as the share of health in the government budget.

2019 ◽  
Vol 3 ◽  
pp. 5 ◽  
Author(s):  
Helen Saxenian ◽  
Ipchita Bharali ◽  
Osondu Ogbuoji ◽  
Gavin Yamey

Background: Achieving universal health coverage (UHC) requires increased domestic financing of health by low-income countries (LICs) and middle-income countries (MICs). It is critical to understand how much governments have devoted to health from their own sources and how much growth might be realistic over time. Methods: Using data from WHO’s Global Health Expenditure Database, we examined how the composition of current health expenditure changed by financing source and the main sources of growth in health expenditures from 2000-2015. We also disaggregated how much growth in government expenditures on health from domestic sources was due to economic growth, growth in the tax base, reallocations in government expenditures towards health, and the interactions of these factors. Results: Lower MICs (LMICs) and upper MICs (UMICs), as a group, saw a significant reduction in out-of-pocket expenditures and a significant growth in government expenditures on health from domestic sources as a share of current health expenditures over the period. This trend indicates likely progress in the pathway to UHC. For LICs, these trends were much more muted. Growth in government expenditure on health from domestic sources was driven primarily by economic growth in LICs, LMICs, and UMICs. Growth in government expenditure on health due to a strengthened tax base was most important in UMICs. For high-income countries, where economic growth was relatively slower and tax bases were already strong, the largest driver of growth in government expenditure on health from domestic sources was reallocation of the government budget towards health. Conclusions: Given these findings from 2000-2015, discussions about a government’s ability to reallocate to health from its overall budget need to be evidence based and pragmatic.  Dialogue on domestic resource mobilization needs to emphasize overall economic growth and growth in the tax base as well as the share of health in the government budget.


2019 ◽  
pp. 220
Author(s):  
Ni Putu Ambar Pratiwi ◽  
I Gusti Bagus Indrajaya

Abstract: The Effect of Economic Growth and Government Expenditures on Absorption ofLabor and Public Welfare in the Province of Bali. This study aims to determine the conditionof employment in the Province of Bali, analyzing the effect of economic growth and governmentexpenditure on employment and community welfare. This data is obtained from the Central StatisticsAgency of Bali province. The analysis technique used is Path Analysis. The results showed that economic growth had a positive and insignificant influence on the absorption of employment in the province of Bali and government expenditure had a positive and significant effect on employmentin the Province of Bali. Government expenditure and employment have a positive and significantinfluence on the welfare of the people in Bali Province while economic growth has a non-significanteffect on people’s welfare. Labor absorption mediate economic growth towards the welfare of thepeople in Bali Province while the absorption of labor does not mediate government spending onthe welfare of the people in Bali Province in 2013-2017.


2018 ◽  
Vol 45 (2) ◽  
pp. 372-386 ◽  
Author(s):  
Gitana Dudzevičiūtė ◽  
Agnė Šimelytė ◽  
Aušra Liučvaitienė

Purpose The purpose of this paper is to provide more reliable estimates of the relationship between government spending and economic growth in the European Union (EU) during the period of 1995-2015. Design/methodology/approach The methodology consisted of several different stages. In the first stage for an assessment of dynamics of government spending and economic growth indicators over two decades, descriptive statistics analysis was employed. Correlation analysis helped to identify the relationships between government expenditures (GEs) and economic growth. In the third stage, for modeling the relationship and the estimation of causality between GE and economic growth, Granger causality testing was applied. Findings The research indicated that eight EU countries have a significant relationship between government spending and economic growth. Research limitations/implications This study has been bounded by general GE and economic growth only. The breakdowns of general GE on the basis of the activities they support have not been considered in this paper, which is the main limitation of the research. Despite the limitation, it might be maintained that the research highlights key relationships in the EU countries. Originality/value These insights might be useful for policy makers. In countries with unidirectional causality running from GE to economic growth, the government can employ expenditure as a factor for growth. The governments should ensure that resources are properly managed and efficiently allocated to accelerate economic growth in the countries with unidirectional causality from GDP to GE.


Author(s):  
Amadi Kelvin Chijioke ◽  
Alolote Ibim Amadi

This study primary examines the effects of government infrastructural expenditure on economic development in Nigeria. Secondary data sourced from reported annual spending on selected infrastructure and annual Gross Domestic Products were statistically analyzed. The data treatments used for the secondary data were unit root and co-integration tests using Augmented Dickey–Fuller and Phillip–Perron model. Weighted least square was also used to test the sample of 37-year annual time series using vector error correction model. The data analysis was done with descriptive statistics. Findings from the study revealed that government spending on transport, communication, education and health infrastructure have significant effects on economic growth; spending on agriculture and natural resources infrastructure recorded a significant inverse effect on economic growth in Nigeria. An element of fiscal illusion was observed in the government spending on agriculture and natural resources indicating that government is not contributing as much as the private sector in spending on agriculture and natural resources infrastructure in Nigeria.


Author(s):  
Silvina Esta Nurwanti ◽  
Nunik Kadarwati ◽  
Supadi Supadi ◽  
Khalid Eltayeb Elfaki Adam

The phenomenon of the development inequality between men and women is development problems that still occur in many regions and can be measured using gender development index. This research has purpose to analyze the factors that influence on gender development index in Special Region of Yogyakarta and indentifying variables that has most influence on gender development index in Special Region of Yogyakarta. This research uses gender development index as dependent variable and was implemented in the Province of D.I. Yogyakarta, in contrast to the previous research that already exists. In this research, the author have a hypothesis formulation that all independent variables, government expenditure in education sector, government expenditure in health sector and economic growth has a positive effect on gender development index. This research uses a panel data regression analysis with fixed effect model (FEM) approach. The results of this research indicate that variable of government expenditures in education has a negative and significant effect on gender development index in Province of D.I. Yogyakarta, the variable of government expenditures in health and variable of economic growth has a positive and significant effect on gender development index in Province D.I. Yogyakarta, and the dependent variable has most influence on gender development index in Special Region of Yogyakarta is a government expenditure on health. The implication of this research is the government to pay more attention to ability of each region in realizing the education expenditure, it is neccesary to strengthen cooperaton and equalize of mission both at the province and district/city level to optimize government performance, and need equality on education to reduce education gap in Special Region of Yogyakarta. For expenditure in the health sector, government should increase the percentage of budget allocation for health sector with provision minimum of 10 percent from local government revenue and expenditure budget (APBD) and need performance optimization in financial management so that health budget can be realized optimally as well. Meanwhile in economic growth, the government should to make equalize in the economic growth for each district or city so that can be enjoyed by all level of society. The limitations of this study are use of research data with a limited period and limited information on availability of information on each research variable used


2013 ◽  
Vol 60 (1) ◽  
pp. 126-134 ◽  
Author(s):  
Marius Sorin Dincă ◽  
Gheorghița Dincă

Abstract This paper examines the relationship between the structure and share of government expenditure into Gross Domestic Product (GDP) and the real GDP per capita. Our study uses a micro panel data for a sample made of ten countries from Central and East European, for the period 2002-2012. The empirical results of the linear regression show that the GDP/capita is positively correlated with public order and safety expenditures as well as with economic actions, while national defense and general public services are negatively correlated. The results obtained largely correspond with the ones reached by other researchers approaching the topic of the relationship between economic growth and composition of the government expenditures. The health and education expenses, though instrumental for the long-term development of any society, did not show any significant impact upon the evolution of the GDP/capita, probably as a result of the short-term available data.


2021 ◽  
Vol 72 (01) ◽  
pp. 74-80
Author(s):  
SMITHA NAYAK ◽  
VARUN S.G. KUMAR ◽  
SUHAN MENDON ◽  
RAMONA BIRAU ◽  
CRISTI SPULBAR ◽  
...  

Government expenditure is linked to the economic growth and is the driving force of the every country. In the post liberalization era, India has been exposed to the dynamics of the world economy due to which India has witnessed a significant impact of Government spending on its economic growth. The objective of this paper is to investigate the effects of the Central Government spending on the growth of the Indian economy over a period, from 2006 to 2016. The online data disclosures of the various ministries have been the major source of secondary data. Co-integration analysis is adopted to evaluate the effect of individual sectorial spending on the economic growth and gross domestic product. The economic spending is classified into 5 sectors namely: General Services, Social Services, Economic Services, Grants in Aid & Contribution and Public debt & Loans for analysis, as disclosed by the sources. The analysis gives us an idea of the various sectors which have a positive impact and the sectors which have a negative impact. The results would play an instrumental role in exploring the sectors in which the government should invest more, thereby contributing to an enhancement in the country’s growth.


2017 ◽  
Vol 15 (1) ◽  
pp. 71
Author(s):  
Avicenna S Hidayat ◽  
Frederic Winston Nalle

Regional economic growth is expressed in the Gross Domestic Regional Product is a good indicator in analyzing the economic conditions of a region. East Java is a province with high regional economic growth. This is supported by adequate government spending, labor, and local revenue. In terms of government expenditure that always experienced increase, indicating more activities financed by the government budget so that the expected multiplier effect is also greater. On the other side of the labor force, East Java has great potential, 19, 36 million people by 2015. Finally, in terms of Original Local Government Revenue, in 2015 the percentage of realization of Original Local Government Revenue East Java is even able to exceed the percentage of realization of state revenues derived from taxes. This study aims to determine the effect of government spending, labor, and Original Local Government Revenue  on regional economic growth in 38 districts / cities in the Province of East Java period 2010-2015. Using panel data analysis, it was found that government spending, labor, and Original Local Government Revenue variables were positively and significantly influenced regional economic growth.


Author(s):  
Lorena Çakerri ◽  
Migena Petanaj ◽  
Oltiana Muharremi

One of the main issues of economic policy and government is to ensure a sustainable economic growth of a country.Economic growth has been at the center of every government in place since at least year 2000.Though for this teen-year ,growth values were satisfactory in Albania, the macroeconomic situation changed in 2009,when appeared the elements of the global crisis. Economic global crisis has awakened interest in the case of fiscal policy.Fiscal policy and monetary policy as well, are two basci components of state economic policy which are used for macroeconomic purposes:influence of gross domestic product, the level of enmployment, income and price level. The two main instruments of fiscal policy are government expenditures and taxes. Government expenditures are considered as the most powerful weapon available to fiscal policy makers, especially in developing countries such as Albania. During the last century , governments have spent more and more in relation to their national income. This increase in government spending can be explained by the impact that this variable can have on the economic growth of a country? In fact ,about the connection between the government spending and the economic growth of a country various studies seem full of contradictions.This conflict is explained by changes in terms of definitions and from the differencies of the various countries included in these studies. The objective of this study is to give an appropriate answer to the question : Can government spending have the potential to impact and stimulate economic growth? How the changes of the size of the fiscal policy instruments have affected indicators of economic growth in Albania? This article will focus on the role that the fiscal policy has on economic growth , especially in our country, reviewing economic growth theories, debates about the effectiveness of fiscal policy , and active fiscal policy. Finally some suggestions for the future addressing the government expenditures towards priority sectors.


2019 ◽  
Vol 22 (2) ◽  
pp. 20-34 ◽  
Author(s):  
Erdal Gumus ◽  
Rza Mammadov

The primary purpose of this paper is to find out the relationship between real government expenditures and real gross domestic product (GDP) for three countries of the South Caucasus namely, Azerbaijan, Armenia, and Georgia. The relationship between the variables is essential for policy formation for these countries due to their transition to market economy. There are two main hypotheses related to real government expenditures and growth. The Wagner’s hypothesis argues that the growth of an economy leads to more government spending while Keynes’s hypothesis proposes that government expenditures feed higher economic growth. From policy perspectives, the Keynesian view gives a dominant role in government intervention for higher growth while Wagner view gives just a passive role to the government in economic policy. This paper is designed to investigate these hypotheses by using econometric panel techniques. The analysis covers the years 1990-2016. According to our empirical results, there is a mutually positive relationship between real government expenditures and economic growth in the South Caucasus. At the same time, we also find short and long-term bidirectional causality. These results confirm each other and in line with the existing literature. Our study contributes to the literature as filling the gap by studying the South Caucasus countries.


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