Government Expenditure, Health and Economy
30/06/2020 Views : 244
I Made Endra Kartika Yudha
Government spending has been trusted by various economists to help drive economic growth. Government expenditure can be divided into direct and indirect expenditure. Government expenditure is believed to provide stimulus to the economy, especially in economies that are experiencing an economic crisis. The economic crisis that occurred due to the spread such as the pandemic convid-19 has become a new chapter in the development of the world economy. The health crisis which has an impact on the economy has forced various countries to make relatively difficult policies. The rapid spread of a pandemic provides two big choices namely locking down or not locking down. Lockdown or not lockdown is a difficult choice because if the lockdown, the big impact caused is a decrease in economic growth, lockdown causes disrupted community and economic activities. However, if the government does not lockdown, a big risk will be faced, namely the spread of the virus convid - 19 will occur. This of course also has costs incurred because inevitably the government will face a big problem many people who might fall ill or even die. Both of these difficult choices certainly both require a relatively large budget to overcome them. Government spending during the pandemic will certainly be very large because it is used to overcome the impact of the pandemic on the economy and finance health care and hospitals that treat convid patients. This is certainly not easy, because together costs are arising from two difficult choices between lock down and not lockdown as well as between economics and health. Of course, each country has its approach to calculating the impact of two difficult choices, and of course, the two difficult choices above require considerable government expenditure