The Impact of Government Educational Expenditure on Human Development Index

Extended abstract
1- Introduction
Government, serving as the primary institution responsible for education, plays a pivotal role in ensuring universal educational access, enhancing educational quality, formulating regional and national programs, and continuously monitoring the educational process. The government's profound influence on the country's educational and training infrastructure underscores its direct impact on social and economic development. Government expenditure in the education sector constitutes a fundamental driver of a nation's human capital development and exerts significant influence on human development indices. These allocations encompass various facets of education, including teacher salaries, educational resources, school and university establishment and renovation, educational programs, and scientific research. Amid budgetary constraints in the education sector, a pressing question emerges: how to judiciously allocate this limited budget among different segments. Consequently, this article delves into an examination of this issue, scrutinizes various categories of government expenditures in the education sector, and assesses their explanatory influence on Human Development Index (HDI) behavior.
2- Methodology
This study employs two regression models to fulfill its research objectives. The first model scrutinizes the relationship between variables associated with government expenditures in the education sector and the Human Development Index (HDI) within member countries of the Organisation for Economic Co-operation and Development (OECD), representing developed and advanced nations. The second model explores the correlation between government education expenditures and the Human Development Index in the context of Iran, a developing country. The variables considered in this study encompass the Human Development Index (HDI), per capita government expenditure on primary education (pri_per), allocated expenditure for secondary education (sec), per capita government expenditure on secondary education (sec_per), per capita government expenditure on tertiary education (ter_per), per capita national income (gdp_cap), and government educational expenditure (GEE). Data related to the Human Development Index is sourced from the United Nations Development Programme, while data pertaining to governmentexpenditures in the education sector is obtained from the World Bank.
3- Findings
The research findings unveil a nuanced relationship between government expenditure in education and the Human Development Index (HDI) in the case of OECD countries. Broadly, government spending within the education sector exerts an overall positive impact on the HDI. This outcome underscores the pivotal role of education investment in fostering human development. Nevertheless, a closer inspection reveals an intriguing pattern: when government spending is examined separately per student across primary, secondary, and tertiary education levels, a counterintuitive adverse influence on the HDI emerges in these OECD nations. This discovery implies that although higher budget allocations to education at a macro level are advantageous, it is imperative to refine spending strategies to optimize fund distribution among diverse educational stages. In stark contrast, the findings pertaining to Iran present a divergent scenario. Here, overall government education spending demonstrates an adverse impact on the Human Development
 
Index. This outcome emphasizes the necessity for a meticulous reassessment of budget allocation and education policies within the Iranian context.
4- Discussion
The complexity of the relationship between government spending in education and human development is prominently underscored by these findings, underscoring the paramount need for tailored policies that consider specific national circumstances. In the context of OECD countries, augmenting the Human Development Index necessitates not only heightened financial investment in education but also a meticulous approach to resource allocation that takes into account diverse education levels. Conversely, in the Iranian context, the imperative is a more strategic and efficient resource allocation to enhance the Human Development Index. This highlights the essential requirement for adaptive policy approaches to optimize human development within the unique dynamics of each nation.
5- Conclusion
Governments play a pivotal role in shaping the course of education, thereby influencing human development. As a consequence, they face the delicate task of allocating finite resources to various educational sectors with precision. Education systems share this responsibility, optimizing budgets to achieve their educational objectives effectively. In a world characterized by budgetary constraints and fiscal challenges, these findings underscore the paramount importance of deliberate and strategic investments in education. Such investments contribute not only to the betterment of society but also to the advancement of human development as a whole.