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 2)

Inflation rate rose slightly to 9.4 percent in November 2015 from 9.3 percent in the previous month. This rise is attributed to price increase in Food and Non-Alcoholic Beverages, and Transportation costs which extends from shortages of petrol across the country. The food sub-index grew by 0.2 percentage points to 10. 1 percent while, the Core sub-index declined by 0.2 percentage points to 8.7 percent within the period. The inflationary up-tick points to the need to curtail the rising food prices by increasing the supply of petrol in the country.