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Do Debt-Service Savings and Grants Boost Social Expenditures?

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  • Alun H. Thomas
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    Abstract

    This paper evaluates whether debt relief and grants can boost social expenditures in lowincome countries. It finds that declines in debt-service help raise social expenditures, but no relationship between grants and social expenditures. Moreover, since the mid-1980s, lowincome countries have managed to fully insulate social expenditures from the effects of budgetary tightening. The magnitude of the impact of these effects on social expenditures, however, is dwarfed by the resources needed to enable these countries to reach the Millennium Development Goals.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/180.

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    Length: 20
    Date of creation: 01 Jul 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/180

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    Related research

    Keywords: Debt relief; Millennium Development Goals; Government expenditures; expenditures; social expenditures; debt-service; budget balance; expenditure; health expenditures; social expenditure; education expenditures; debt service; expenditures on health; expenditure ratio; budgetary changes; public spending; public expenditures; public expenditure; government budget; budgetary consolidation; expenditure increase; budget constraint; health expenditure; expenditure share; budget balances; expenditure requirements; government budget balances; expenditure ratios; government spending; fiscal affairs; expenditure shares; budgetary improvement; expenditure envelope; investment expenditures; fiscal affairs department; fiscal consolidation; fiscal tightening; total expenditures; tax reductions; fiscal deficits; government budget balance; reducing fiscal deficits;

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    1. Katherine Baicker, 2001. "The Spillover Effects of State Spending," NBER Working Papers 8383, National Bureau of Economic Research, Inc.
    2. Filmer, Deon & Pritchett, Lant, 1997. "Child mortality and public spending on health : how much does money matter?," Policy Research Working Paper Series 1864, The World Bank.
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    Cited by:
    1. René W. Aubourg & David H. Good & Kerry Krutilla, 2008. "Debt, democratization, and development in Latin America: How policy can affect global warming," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 27(1), pages 7-19.

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