Effectiveness of Government Expenditure Fiscal Policy on the Savings and Consumptions in the Local Communities: A Case Study of Social Cash Transfer on the Beneficiaries in Kaoma District

The study aimed at investigating into 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. A mixed research (qualitative and quantitative) approach was adopted, with a sample size of 50 beneficiaries selected through stratified random sampling. Primary data were collected using a questionnaire, and data analysis was performed using Megastat. The study found that social cash transfer has an economic impact on Savings with 46% of respondents save part of the social cash transfer money while 52% of the respondents reported an improvement in their ability to save ever since receiving the Social Cash Transfer. The chi-square test (Chi = 27.57, p = 0.0064) revealed a statistically significant association between savings frequency and savings location, indicating that respondents saving frequently ('always' or 'sometimes') tend to keep their savings at home, while those saving less frequently ('rarely' or 'never') are more likely to have no savings. The study also found that SCT influenced household food consumption, with 62% of respondents report an improvement in their household's food consumption since receiving the cash transfer and 72% of respondents always use the cash transfer money to buy basic household needs. The regression model confirms a statistically significant relationship between the improvement in household food consumption and the frequency of buying basic household needs using the cash transfer money (F = 6.29, p-value = 0.0156), indicating that the improvement in household food consumption has a significant positive effect on the frequency of buying basic household needs. Specifically, for every unit increase in the improvement of household food consumption, the frequency of buying basic household needs increases by 0.438 units (coefficient = 0.4380, p-value = 0.0156). The study concludes that the Social Cash Transfer has a positive impact on beneficiaries' economic empowerment, but challenges persist. Recommendations include promoting financial inclusion, enhancing entrepreneurship support, and addressing healthcare access challenges.