June 18, 2013

Public Spending On Education And Health In Nigeria

The paper conducts a Benefit Incidence Analysis to determine if public expenditure in education and health sector in Nigeria is pro-poor or pro-rich.

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OBJECTIVE

  • Determine how to answer the question: Is public expenditure in education andhealth sector in Nigeria pro-poor or pro-rich?

BASIC CONCEPT

  • BIA as a tool focuses on how government subsidies affect the distribution ofwelfare in the population. It addresses the issue of supply and demand forpublic services and delivers information on efficiency and equity ingovernment allocation of resources for social services and on the publicutilization of these resources. The central idea behind BIA is to gain a betterinsight into how government funds are distributed across differentincome/expenditure groups or if spending is in reality targeted to eitherworse-off or better-off households.
  • Commonly used to examine the impact of public expenditure
  • Analysis applicable to direct transfers or transfers obtained from consumingsubsidized goods or services
  • This is the first attempt to conduct a rigorous BIA in Nigeria on howeffectively the Nigerian government is



Related

 

Nigeria Economic Update (Issue 18)

Inflation rate continued its upward trajectory in the week under review. Specifically, the Consumer Price Index (CPI) increased by 1.39 per cent, from 11.38 per cent in February to 12.77 per cent in March, 20161. Remarkably, this is the highest rate since July 2012, representing a 4-year high. While both components of the CPI rose in the period, the food sub-index was largely the main driver of the increase in the CPI, with a growth rate of 1.39 per cent between February and March. The persistent scarcity in petroleum products, especially Premium Motor Spirit (PMS), has increased transportation costs and the price of food items.