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COVID-19 Effects on Public Finance and SDG Priorities in Developing Countries: Comparative Evidence from Bangladesh and Sri Lanka

Author

Listed:
  • Sisira R. N. Colombage

    (Federation University)

  • Suborna Barua

    (University of Dhaka)

  • Madurika Nanayakkara

    (University of Kelaniya)

  • Udari N. Colombage

    (Monash University)

Abstract

The COVID-19 pandemic, an unprecedented global health crisis, rapidly transferred into a global economic and social crisis. The pandemic has threatened the world’s commitment to achieve Sustainable Development Goals (SDGs) by 2030 as governments in developing countries have shifted their priorities from attaining SDGs, to providing urgent financial needs to save lives and prevent recession in hopes for a rapid economic recovery. The rerouting of public funding priorities has undermined the progress and achievement of SDGs. We employed a mixed-method and carried out a comparative study using pre- and post-public financial data of two developing countries in South Asia; Bangladesh and Sri Lanka. A threefold analysis was conducted to investigate the evolution of the COVID-19 pandemic in two countries, the impact of the pandemic on external and internal public finance and the effect of the pandemic in shifting the policy priorities from SDGs to economic survival. This study found that both countries are highly vulnerable to the COVID-19 pandemic and are suffering from the lack of financing from external sources through the private sector as well as an increasing foreign debt. There is mounting pressure on the fiscal balance in both countries.

Suggested Citation

  • Sisira R. N. Colombage & Suborna Barua & Madurika Nanayakkara & Udari N. Colombage, 2023. "COVID-19 Effects on Public Finance and SDG Priorities in Developing Countries: Comparative Evidence from Bangladesh and Sri Lanka," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(1), pages 85-111, February.
    • Handle: RePEc:pal:eurjdr:v:35:y:2023:i:1:d:10.1057_s41287-022-00558-6
    DOI: 10.1057/s41287-022-00558-6
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    References listed on IDEAS

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    1. Luca Fornaro & Martin Wolf, 2020. "Covid-19 coronavirus and macroeconomic policy," Economics Working Papers 1713, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Atiqur Rahman Sunny & Mahmudul Hasan Mithun & Shamsul Haque Prodhan & Md. Ashrafuzzaman & Syed Mohammad Aminur Rahman & Md Masum Billah & Monayem Hussain & Khandaker Jafor Ahmed & Sharif Ahmed Sazzad , 2021. "Fisheries in the Context of Attaining Sustainable Development Goals (SDGs) in Bangladesh: COVID-19 Impacts and Future Prospects," Sustainability, MDPI, vol. 13(17), pages 1-22, September.
    3. Mohammad Mafizur Rahman & Rezwanul Hasan Rana & Suborna Barua, 2019. "The drivers of economic growth in South Asia: evidence from a dynamic system GMM approach," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(3), pages 564-577, August.
    4. Bipasha Barua & Suborna Barua, 2021. "COVID-19 implications for banks: evidence from an emerging economy," SN Business & Economics, Springer, vol. 1(1), pages 1-28, January.
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