The article Expanding budget space to improve health outcomes in low- and middle-income countries: what role for tax expenditures?, published in Health Policy and Planning on 22 October 2025, provides the first cross-country analysis of how tax expenditures influence health outcomes. Authors Abrams M. E. Tagem, Yann Tapsoba and Hélène Barroy examine how preferential tax treatments reduce government revenues that could otherwise strengthen health systems. Using data from 55 developing countries between 2000 and 2022, the study assesses links between tax expenditures, under-five mortality and maternal mortality.
Findings show that higher tax expenditures are associated with worse maternal and child health outcomes, especially in low-income countries. Strong public financial management, including transparency and effective revenue mobilisation, can mitigate these effects and support expanding budget space for health in low-resource settings.