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 25)

Naira appreciated in the week under review. At the parallel market, naira gained 0.54 percent to exchange at N368/$ on June 23, 20175. This is at the backdrop of injections into the forex market by the CBN to the tune of $195 million at the beginning of the review week, to meet various forex demands. This is amid a slight week-on-week increase in the external reserves (by 0.1 percent to $30.23 billion). Despite the recent naira appreciation, the long-term prospects seem bleak given that the ongoing intervention that seeks to stabilize naira by depleting reserves is unsustainable.