The role of local public spending in the achievement of the social dimension of sustainable development: An empirical analysis

Abstract

The 2030 Agenda aims to reduce existing disparities, requiring the public sector, especially local governments, to align budgets with these goals. Thus, public spending is seen as a redistributive tool for achieving social equity. In this respect, distributional justice theory aims to ensure equal access to services, rights and protection, which is essential in social sustainability. Therefore, this study examines the impact of municipal public spending and other factors on achieving social Sustainable Development Goals (SDGs). The findings reveal that municipalities excelling in aid and subsidies through current transfers, with strong investment in human capital, broad political competition, a higher-educated population, robust social institutions, and lower debt levels, make the most progress in achieving social SDGs.