Analyzing the Impact of Government Expenditure on the Health Sector: Evidence from Pakistan

Abstract

The study on the impact of government expenditure on the health sector of Pakistan is significant as it delves into a critical aspect of public policy that directly affects the well-being of citizens and the overall development of the country. By analyzing data from 1990 to 2015, the research aims to understand the relationship between government spending in the health sector and various economic indicators. The findings of this study could have significant implications for policymakers in Pakistan. Understanding the impact of government expenditure on the health sector can inform decisions related to budget allocation, resource allocation, and policy priorities. If the research uncovers a positive relationship between government spending on health and economic growth indicators, it could provide justification for increasing investments in healthcare infrastructure, personnel, and services. Conversely, if the study reveals inefficiencies or mismatches in government spending on health, it could highlight areas for improvement in healthcare delivery, governance, and policy implementation. This could lead to targeted interventions aimed at enhancing the effectiveness and efficiency of healthcare spending, ultimately improving health outcomes for the population and contributing to sustainable economic growth. The analysis of different factors influencing the health sector in Pakistan, including infant mortality rate, government expenditure as a percentage of GDP, improved sanitation facilities, and literacy rate, provides valuable insights into the dynamics of healthcare outcomes and the determinants of population health. The positive relationship observed between infant mortality rate and crude death rate underscores the importance of addressing factors that contribute to infant mortality, such as inadequate healthcare access, poor maternal and child health services, and insufficient sanitation infrastructure. By improving these aspects, policymakers can work towards reducing infant mortality rates and overall crude death rates. On the other hand, the negative relationship between improved sanitation facilities and crude death rate suggests that investments in sanitation infrastructure can have significant public health benefits, including reducing the incidence of waterborne diseases and improving overall hygiene standards. Similarly, the negative relationship between literacy rate and crude birth rate highlights the role of education in empowering individuals, particularly women, to make informed decisions about family planning and reproductive health. The positive relationship between government expenditure and crude birth rate indicates that increased investment in healthcare services and maternal and child health programs can lead to higher birth rates. However, it is essential to ensure that government expenditure is effectively allocated and transparently utilized to maximize its impact on improving healthcare outcomes and population health. These empirical findings underscore the multifaceted nature of healthcare interventions and the need for comprehensive strategies that address various determinants of health. By targeting investments in sanitation infrastructure, education, and healthcare services, policymakers can work towards improving health outcomes and promoting sustainable development in Pakistan.