Do Debt-Service Savings and Grants Boost Social Expenditures?
July 1, 2006
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Summary
This paper evaluates whether debt relief and grants can boost social expenditures in lowincome countries. It finds that declines in debt-service help raise social expenditures, but no relationship between grants and social expenditures. Moreover, since the mid-1980s, lowincome countries have managed to fully insulate social expenditures from the effects of budgetary tightening. The magnitude of the impact of these effects on social expenditures, however, is dwarfed by the resources needed to enable these countries to reach the Millennium Development Goals.
Subject: Budget planning and preparation, Education spending, Expenditure, Health, Health care spending
Keywords: coefficient, debt ratio, debt service, debt-service saving, WP
Pages:
20
Volume:
2006
DOI:
Issue:
180
Series:
Working Paper No. 2006/180
Stock No:
WPIEA2006180
ISBN:
9781451864403
ISSN:
1018-5941
