Effects of Government Expenditure as a Fiscal Policy on the Financial Access and Economic Investments of Local Communities: A Case Study of Social Cash Transfer on the Beneficiaries in Kaoma District

The study aimed at investigating the effects of government expenditure as a fiscal policy on the economic welfare on local communities, focusing on Social Cash Transfer on the Beneficiaries in Kaoma District. The study was guided by the following specific objectives; to evaluate the effects of Social Cash Transfer on investment activities among beneficiaries and to identify the means through which Social Cash Transfer can be accessed by beneficiaries in Kaoma District. A mixed research design was adopted, with a sample size of 50 beneficiaries selected through stratified random sampling. Primary data were collected and analyzed in Megastat. The study found that 70% of respondents used part of their Social Cash Transfer money to start or expand a business, with 88% of respondents reporting an increase in income from investments since receiving their transfer. The hypothesis test compares the sample mean (2.460) to a hypothesized value of 2.000, shows a statistically significant difference between the sample mean (2.460) and the hypothesized value (2.000), with a p-value of 0.0004, suggesting that respondents tend to agree that the cash transfer encourages people to invest. The study found that 100% of respondents believed that the Social Cash Transfer has improved their standard of living, with 64% of the respondents receiving their SCT through Mobile Money. While 68% reported facing challenges in accessing their Social Cash Transfer, they showed satisfied with the method used to deliver their Social Cash Transfer. However, regression analysis found not statistically significant significance between the frequency of receiving the Social Cash Transfer and the perceived improvement in the standard of living among beneficiaries with the p-value of 0.0522, suggesting that other factors may be influencing the perceived improvement in the standard of living. The study recommends scaling up the Programs by addressing challenges in accessing the cash transfer by improving payment systems, reducing transaction costs, and enhancing beneficiary awareness and education.