Government budgets and poverty reduction in developing countries: a systematic review of the role of social welfare programs and the challenges ahead

• Main Authors: Adamu Ahmed, Wudil, Md Saad, Norma, Omercic, Jasmin, Lacheheb, Zakaria, Muhammad, Rislanudeen
• Format: Article
• Language: English
• Published: European Academy of Sciences Ltd, London, UK. 2023
• Subjects: BPH Islamic Economics; BPH104 Islam and poverty; BPH741 Waqf; HB126.4 Islamic Economics; HB131 Methodology.Mathematical economics. Quantitative methods; HB71 Economics as a science; HB846 Welfare theory; HG4001 Financial management. Business finance. Corporation finance.
• Online Access: http://irep.iium.edu.my/109146/7/109146_Government%20budgets%20and%20poverty%20reduction.pdf; http://irep.iium.edu.my/109146/; https://economics-and-finance.com/files/archive/EF_2023_2(67-72).pdf

This paper presents a systematic literature review of 25 studies published between 2010 and 2021 on the relationship between government budgets and poverty reduction in developing countries. The review identifies a positive relationship between government spending on social welfare programs and poverty reduction. Specifically, increased spending on education and healthcare has been found to have a significant impact on reducing poverty levels. The review also highlights the importance of targeting government spending to specific populations and regions where poverty levels are high, and the challenges and limitations of government spending in poverty reduction efforts, such as corruption and political instability. The paper concludes with important policy implications, such as the need for increased spending on social welfare programs, addressing corruption and mismanagement of government funds, and targeting spending to specific populations and regions where poverty levels are high. The review provides insights for policymakers and practitioners working in the field of poverty reduction, emphasizing the importance of good governance, transparency, and accountability in ensuring that government budgets effectively contribute to poverty reduction.