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UNICEF Social Inclusion, Policy and Budgeting

Public Spending and Outcomes: Does Governance Matter?

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AUTHOR Andrew Sunil Rajkumar and Vinaya Swaroop
TYPE Journal Article
DATE 2007
TOPIC Budgeting for children

The role of good governance as a key to development effectiveness has been emphasized in recent years. It has been argued that merely allocating public resources for the right goods and services may not lead to desirable outcomes if budget institutions -- involving budget formulation, execution and monitoring -- are malfunctioning. While this proposition seems straightforward and difficult to disagree with, no serious empirical work has been done to support it. In this paper, the authors study the impact of public spending on outcomes at different levels of governance. The basic idea is to examine the link between specific budgetary allocations and outcomes, and to see how these relationships are affected by improved governance.

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