This Budget Brief examines the FY 2026 Regional Budget, highlighting the geographic distribution of national government spending across the country’s 17 regions. While a descriptive analysis of the regional budget’s distribution provides an essential foundation, this paper complements it with an evaluation of its economic impact to provide a more holistic understanding. The analysis assesses not just the fairness of the distribution but also the impact of these expenditures, seeking to answer two central questions: How responsive are regional economies to national government spending? And does this impact differ based on the type of expenditure (e.g., social vs. economic services) and the economic conditions of a region? By examining this link between budget allocations and growth outcomes, this paper intends to provide more evidence-based insights to inform budget deliberations and promote sustained, inclusive development across all regions.
