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The FY 2026 Regional Budget: Distributional Patterns and Growth Evidence from Past Spending


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.


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