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School grants and education outcomes: The impacts of a non-salary budget reform in Punjab Pakistan

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  • Xie, Min
  • Sarwar, Kafeel

Abstract

Whether increasing school funding is effective in improving education quantity and quality is a critical question for the education policymakers. In this essay, we analyze the impacts of a decentralized school grant program in Punjab-Pakistan, the “Non-salary Budget (NSB)” reform. Under this reform, each public school received about six times the amount of the grant from government which they had received prior to the reform. To identify the effects of the reform, we explore the spatial and temporal variation of the policy roll-out. We find that the reform has significantly improved the schools’ infrastructure conditions. However, we do not find any discernible effects on student enrollment, attendance rate or test score in the short to medium run.

Suggested Citation

  • Xie, Min & Sarwar, Kafeel, 2026. "School grants and education outcomes: The impacts of a non-salary budget reform in Punjab Pakistan," International Journal of Educational Development, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:injoed:v:121:y:2026:i:c:s0738059326000180
    DOI: 10.1016/j.ijedudev.2026.103508
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    Keywords

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    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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