Government Spending on Education and Its Relationship with the Human Development Index: The Case of the Philippines and Singapore

Abstract

This study examined the relationship between government spending on education as percentage of the GDP and Human Development Index (HDI) in the Philippines and Singapore over a 13-year period from 2009-2021. The study aimed to determine the trend of the government expenditure to education and the HDI of the a developing and a developed country and how educational investment influenced the human development outcomes in these two Southeast Asian countries. Data from various sources such us, World bank, Trading Economics, and United Nation Development Programme (UNDP) were analyzed descriptively. The GNU Regression, Econometrics and Time-Series Library (GRETL) as statistical software was used in data analysis particularly in determining the relationship between the independent and dependent variables. The Philippines experienced fluctuating spending from 2010 to 2017, with a decline post-2017, while Singapore’s education budget was more stable, with a gradual increase around 2013, followed by a decline, stabilization between 2014 and 2018, and a slight rebound in 2021. The trend of Human Development Index in Philippines and Singapore in the period of 2009 to 2021, generally increased, indicating social and economic development. Lastly, the regression results indicate a significant relationship between government spending on education and the Human Development Index (HDI) in the Philippines and Singapore. Governments in both countries specifically the Philippines is encouraged to collaborate with international organizations and develop long-term plans to address different issues on enhancing the country’s HDI through education expenditures.