Analysis of the Determinants of Public Education Expenditures in Bangladesh

Abstract

This study based on the well-known theories of public policy analysis, economics, as well as public finance through empirically exploring and examining the determinants of public expenditure on education in Bangladesh. It is postulated, for the purpose of the research that education expenditures are determined by multidimensional factors. Economic-demographic, decision-making, political, and new institutionalism theories are therefore been studied, along with the concept of education. This research identified as well as computed education expenditure by types along with levels of education as per the distribution of government budget and the education system of Bangladesh. The results disclosed that education financing policy in Bangladesh is primarily determined by the previous year’s expenditures. Indirect tax also increased the total education expenditure as percentage of GDP. This is what in line of incrementalism theory and fiscal illusion or voting bias model suggests, respectively. Furthermore, total populations and government effectiveness has the positive impact of types as well as levels of education expenditures; implying that government of Bangladesh taken under consideration only certain factors and neglects to incorporate the importance of economic, governance and educational determinants while allocating education expenditures.