Analysis of the determinants and distributional effects of public education expenditures in Bangladesh
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Title Analysis of the determinants and distributional effects of public education expenditures in Bangladesh
Creator Sheikh, Md. Rashidul Islam
Contributor Ponlapat Buracom
Publisher National Institute of Development Administration
Publication Year 2563
Keyword Education -- Economic aspects, Education -- Economic aspects -- Bangladesh, Distributional effects, Education expenditure
Abstract This study is based on the well-known theories of public policy analysis, economics, and public finance and empirically explores and examines the determinants and income distributional effects of public expenditure on education in Bangladesh. It is postulated that multidimensional factors determine education expenditures. Economic-demographic, decision-making, political, and new institutionalism theories are therefore studied, along with the concept of education. This research identifies and computes education expenditure by types, along with levels of education as per the distribution of government budget and the education system of Bangladesh. The results disclosed that the previous year's expenditures primarily determine Bangladesh's education financing policy. The indirect tax also increases total education expenditure as a percentage of the GDP. This is in line what incrementalism theory and fiscal illusion or voting bias model suggests.Furthermore, total population and government effectiveness were seen to have a positive impact on the types and levels of education expenditures. This implies that Bangladesh's government has considered only certain factors and has neglected to incorporate the importance of economic, governance, and educational determinants in allocating education expenditure. This study was supplemented by the Household Income and Expenditure Survey (HIES) data for measuring income inequality applying benefit incidence analysis. The aim was to determine whether public education expenditure reduces education inequality across the levels of education in Bangladesh and improves the distribution of educational expenditure across households.            In general, the findings and analysis of the data demonstrated that the effects of the public expenditure of income distribution on primary education are pro-poor but secondary education is not pro-poor in terms of the distributional effects of public expenditure. The income share of the lowest income group has increased, whereas the income share of the highest income group has declined. Furthermore, overall inequality has been decreased as determined by the Gini coefficient, which has decreased to 0.3426 from 0.3982.This paper recommends that in order to encourage equitable resource allocation, better policies, as well as supplementary budget in the education sector, are essential in Bangladesh. This can only be attained by investing more in primary and secondary education infrastructures, frequent checks of the effectiveness across levels of education, and notably framing sustainable public education policies. This research provides a guideline on how to comprehend the impacts of these factors and further offers solutions to reduce these effects in attempting to utilize the limited financial resources efficiently and effectively through supporting and targeting education programs and policies in Bangladesh.
Language EN
URL Website https://repository.nida.ac.th/handle/662723737/5516
Website title NIDA Wisdom Repository
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