Government Expenditure Allocation and Human Capital Development in Djibouti

Purpose: The aim of the study was to assess the government expenditure allocation and human capital development in Djibouti. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Government expenditure allocation refers to how a government distributes its funds across different sectors and programs. In terms of human capital development, study has shown that governments that prioritize investments in education, healthcare, and social welfare tend to have better outcomes in terms of economic growth, social development, and overall well-being of their citizens. Countries with higher government spending on education, for example, often have higher literacy rates, better-skilled workforces, and greater innovation capacity. Similarly, increased spending on healthcare can lead to improved public health indicators such as life expectancy and reduced mortality rates. Overall, effective allocation of government expenditure towards human capital development is crucial for long-term sustainable development and improving quality of life for citizens. Implications to Theory, Practice and Policy: Human capital theory, social investment theory and efficient allocation theory may be used to anchor future studies on assessing the government expenditure allocation and human capital development in Djibouti. In terms of practical contributions, fostering collaboration and partnerships among government agencies, educational institutions, healthcare providers, and private sectors is paramount. In terms of policy contributions, it is crucial to implement evidence-based policies that are informed by robust empirical research and evaluations.