Dilemma of Welfare Budget and Benefit Cuts in Pakistan
Keywords:
Budget Deficit, Benefits, Unemployment , Health expenditures & PakistanAbstract
The research focuses on the dilemma of welfare funds and the reduction of benefits in Pakistan between 1990 and 2023. Government spending on health care, education, and social safety nets can be effective in promoting population growth. However, they are vulnerable to challenges, including ongoing fiscal deficits, rising debt, defence prioritisation, and external constraints such as IMF programs. We have examined the effects of the budget deficit, expenditures on health, defense, and education, and the unemployment rate on human development in the Pakistani economy. Regression results indicated that budget deficit and health expenditures have increased human development. However, unemployment has decreased human development in Pakistan. Some policy recommendations include cutting expenditure on non-development priorities, negotiating protections for IMF programs, and gradually shifting the focus to human development.
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