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A Benefit Incidence Analysis of Public Spending on Education in Pakistan Using PSLM Data

Abstract

Understanding the behavior of government spending polices within Pakistan and designing future courses of action based on results generated. 

The study aims to ascertain the nature of government spending on education within Pakistan by carrying out a benefit incidence analysis (BIA) that will indicate whether spending is pro-rich or pro-poor.  Incidence analysis conducted on data derived from Pakistan Social and Living Standards Measurement Survey (PSLM) 2007/08 and National Health account (Pakistan Bureau of Statistics) 2007/08 reveals progressive nature of government spending at primary level of education. Conversely, regressive nature of government spending is observed at higher level of education both at a provincial and national level. The results support the view that government spending is limited within primary education whose beneficiaries are significantly large whereas government spending is significantly high within higher education whose beneficiaries are limited. In light of the results, the researchers recommend that primary and secondary education must be made compulsory whereas free education must be offered to under privileged citizens. Conversely, higher education must be provided to students on merit basis.

The paper concludes that education is a basic right and therefore the government must play a significant role in providing quality primary, secondary and technical education to the masses. Supply side policies including subsidies for meals, uniform, course material excreta can provide an incentive for poor to attain education whereas encouraging private sector can also allow the country to enhance the state of education.

Publishing Year: 2012

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