Who benefits from government expenditure? A case study of Colombia

13351 WHO BENEFII S FROM GOVERNMENT EXPENDITURE? A Case Study of Colombia , FILE COPY , W B R l~~~~~ Wol BakRsac  Governments can improve the distribution of income and also can eradicate extreme poverty by changing the composition and direction of their public expenditure. But more important than the capacity of the fiscal budget to transfer income is its use to increase the con- sumption of such basic needs as housing, water, sewerage, and health and education services. Such use would permit the poorest groups in the population to enjoy higher levels of consumption at an earlier stage of develop- ment than would be the case if the private forces of supply and demand alone were acting during the normal course of per capita income growth. What is the present performance of developing countries in reaching the poorest income groups through public expenditure? How has this performance evolved over time? Are there constraints on the consumption of basic services other than the mere availability or supply of these services? This research study addresses these questions with the help of a case study carried out in Colombia. Another case study is described in the companion volume, Public Expenditure in Malaysia: Who Benefits and Why, by Jacob Meerman, also published by Oxford. Marcelo Selowsky is the economic adviser in the Development Economics Department of the World Bank.  Who Benefits from Government Expenditure? A Case Study of Colombia A World Bank Research Publication   Who Benefits from Government Expenditure? A Case Study of Colombia Marcelo Selowsky Published for the World Bank Oxford University Press  Oxford University Press NEW YORK OXFORD LONDON GLASGOW TORONTO MELBOURNE WELLINGTON HONG KONG TOKYO KUALA LUMPUR SINGAPORE JAKARTA DELHI BOMBAY CALCUTTA MADRAS KARACHI NAIROBI DAR ES SALAAM CAPE TOWN