The Role of Government Social Expenditures in Achieving Pro-Poor Growth

With the increasing emphasis on the welfare and supportive responsibilities of governments for low-income groups, the role of government social expenditures in achieving macroeconomic and developmental goals has gained significance.This study examines the impact of government social expenditures in education and healthcare on poverty, per capita income, and income inequality.To this end, a system of simultaneous equations is estimated using data from 1357 to 1399 and the Generalized Method of Moments (GMM).The results of the growth-povertyinequality triangle estimates indicate that economic growth in Iran, given the level of income inequality, has been poverty-inducing.Additionally, expenditures on education have led to poverty reduction, whereas insufficient healthcare expenditures have not had the same effect.Therefore, the proper allocation of government expenditures can adjust the relationships within this triangle toward pro-poor growth and poverty eradication.