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The Incidence of Government Expenditures on Education and Health: Microeconomic Evidence from Pakistan


  • Ahmed Nawaz Hakro

    () (Visiting Scholar, Department of Economics, University of Glasgow, Glasgow, UK.)

  • Muhammed Akram

    () (Lecturer, International Institute of Islamic Economics, International Islamic University Islamabad, Pakistan.)


This paper has analyzed the incidence of government expenditures on health and education by using the benefit incidence approach. Recent household level data from the Pakistan Standards of Living Measures (PSLM) has been used to calculate the incidence for Pakistan overall, and at provincial and regional levels, of different education and health services. GINI and concentration coefficients have been used to measure the benefit inequalities of public expenditure. The results demonstrate that education expenditures are progressive in overall Pakistan. The progressiveness hypothesis regarding health expenditure is accepted partially, as the expenditure is progressive for Pakistan overall, but regressive at regional and provincial level of services. Efforts should be directed towards the horizontal and vertical equity in the allocation of resources both at the provincial and regional levels, and greater targeting of rural and low-income groups can make the expenditureprograms more effective and result oriented.

Suggested Citation

  • Ahmed Nawaz Hakro & Muhammed Akram, 2007. "The Incidence of Government Expenditures on Education and Health: Microeconomic Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 27-48, Jul-Dec.
  • Handle: RePEc:lje:journl:v:12:y:2007:i:2:p:27-48

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    References listed on IDEAS

    1. Sakellariou, Chris & Patrinos, Harry Anthony, 2004. "Incidence analysis of public support to the private education sector in Cote d'Ivoire," Policy Research Working Paper Series 3231, The World Bank.
    2. Fazal Husain & Muhammad Ali Qasim & Khalid Hameed Sheikh, 2003. "An Analysis of Public Expenditure on Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 771-780.
    3. Muhammad Sabir, 2002. "Gender and Public Spending on Education in Pakistan: A Case Study of Disaggregated Benefit Incidence," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 477-493.
    4. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    5. Husain, Fazal & Qasim, Muhammad Ali & Sheikh, Khalid Hameed, 2003. "Analysis of Public Expenditure on Education in Pakistan," MPRA Paper 2722, University Library of Munich, Germany.
    6. David E. Sahn & Stephen D. Younger, 2000. "Expenditure incidence in Africa: microeconomic evidence," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 329-347, September.
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    Cited by:

    1. repec:ksp:journ1:v:4:y:2017:i:2:p:203-214 is not listed on IDEAS
    2. Mawuli Gaddah & Alistair Munro & Peter Quartey, 2015. "The rich or the poor: who gains from public education spending in Ghana?," International Journal of Social Economics, Emerald Group Publishing, vol. 42(2), pages 112-131, February.
    3. Gaddah, Mawuli & Munro, Alistair & Quartey, Peter, 2016. "Education subsidy and school enrollments in rural Ghana," International Journal of Educational Development, Elsevier, vol. 46(C), pages 143-152.
    4. Syed Shujaat AHMED & Asif JAVED, 2017. "The Effect of Public Sector Development Expenditures and Investment on Economic Growth: Evidence from Pakistan," Journal of Economics and Political Economy, KSP Journals, vol. 4(2), pages 203-214, June.
    5. Mawuli Gaddah & Alistair Munro, 2011. "The Progressivity Of Health Care Services In Ghana," GRIPS Discussion Papers 11-14, National Graduate Institute for Policy Studies.

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    BenefitIncidence; Health; Education; and Pakistan;


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