By Ramil Abbasov

In an age when balancing budgets seems to take precedence over everything else, governments across the world are turning to a dangerous solution — cutting essential public services. Healthcare, education, and public safety — the very pillars that hold up a functioning society — are increasingly on the chopping block. And while politicians boast about trimming deficits, ordinary citizens are left to bear the brunt of these cuts, often with life-altering consequences.

Here’s the hard truth: slashing public service budgets may offer short-term fiscal relief, but it creates long-term damage that costs far more to fix. Whether it’s a sick patient waiting longer for care, a child struggling in an overcrowded classroom, or neighborhoods left vulnerable to crime, the effects of austerity are real — and measurable.

Healthcare Cuts: When Saving Money Costs Lives

Let's start with healthcare — the sector most vulnerable to budget cuts and yet most vital to public well-being. According to OECD data, a 10% reduction in healthcare funding is associated with a 3–5% drop in patient satisfaction and, more shockingly, a rise in mortality rates.

Why? Because budget cuts often hit preventive care first — the very system that keeps people out of emergency rooms. When preventive care is slashed, people delay treatment until problems become critical, leading to higher emergency room visits (up to 4% higher in some regions). This not only costs lives but ends up costing the healthcare system more, as emergency care is exponentially more expensive than prevention.

And let's not forget who suffers the most: the poor, the elderly, and marginalized communities, who depend on public healthcare and can’t afford private alternatives.

Education Cuts: Undermining the Future

If cutting healthcare is a blow to today's citizens, cutting education is a blow to the future. Studies from the World Bank show that even a modest cut in education budgets leads to a 4% drop in standardized test scores, larger student-to-teacher ratios, and a 2–3% increase in dropout rates.

Think about what that means: fewer qualified graduates, more young people leaving school without the skills to succeed and widening gaps between rich and poor districts. Education is the ultimate engine of economic growth and social mobility, but when we underfund it, we stall that engine.

What’s worse, cuts hit already struggling schools hardest. Wealthy neighborhoods may fill gaps with private donations, but schools in poor communities can’t. This deepens social inequality, making poverty and poor education a vicious cycle that’s nearly impossible to break.

Public Safety Cuts: Paying More for Less Safety

What happens when you cut public safety budgets? Crime goes up — and people lose trust in those meant to protect them. Research from Smith and Lee (2017) shows that a 5% cut in public safety funding leads to a 2–3% increase in crime rates, including violent crimes.

Cuts to police and emergency services mean slower response times, fewer patrols, and overstretched personnel. Communities feel abandoned, and criminals feel emboldened. The result? More danger, more fear, and ultimately more spending to repair the damage done by rising crime.

The False Economy of Austerity

Here’s what needs to be said clearly: Budget cuts are a false economy. The savings made today are wiped out — and more — by the costs they generate tomorrow.

Cut healthcare, and you spend more on emergency services and long-term health issues. Cut education, and you lose a generation of skilled workers, damaging economic growth. Cut public safety, and you pay for rising crime and broken communities.

The damage is not just economic — it's social. When public services shrink, inequality grows. The wealthy buy their way out of bad public systems — private schools, private healthcare, private security. Everyone else is left behind, fueling resentment, social division, and political instability.

Is There a Better Way? Absolutely.

Instead of gutting public services, governments should focus on targeted spending, smart reforms, and fairer taxation.

 Governments must protect core services such as healthcare, education, and public safety, recognizing that not all spending is equal. These essential areas should be shielded from cuts as much as possible because they are critical to social well-being and economic stability. Evidence shows that targeted fiscal adjustments, rather than indiscriminate across-the-board cuts, help preserve the quality of vital services without causing budget overruns. At the same time, governments should focus on improving efficiency in how public services are delivered, not just on reducing spending. By streamlining bureaucracy, embracing digital technologies, and cutting waste, governments can save significant resources while maintaining — or even improving — the quality and accessibility of services. This approach ensures that citizens continue to receive necessary support without undermining fiscal responsibility.

For instance, some European cities have slashed administrative costs by digitizing records and automating processes, freeing up funds for frontline services.

Governments must recognize that investing in people through public services is not merely an expense but a crucial investment in a nation's future. Every dollar spent on education generates multiple dollars in economic growth by building a skilled workforce that drives innovation and productivity. Similarly, every dollar allocated to preventive healthcare reduces future healthcare costs by avoiding expensive emergency treatments and managing chronic diseases early. Alongside investing in people, it is essential to tax fairly and effectively. Rather than slashing essential services, governments should focus on closing tax loopholes, combating tax evasion, and ensuring that the wealthiest individuals and corporations pay their fair share. A progressive taxation system can generate the necessary revenue to sustain strong public services without overburdening the middle class, fostering both economic justice and fiscal sustainability.

What Happens When We Get It Right?

There are success stories that prove a better path is possible. Some Asian economies have weathered economic challenges without dismantling core public services, focusing on targeted reforms and sustained investment in education and healthcare.

Even in Europe, countries that protected essential services during austerity periods experienced better long-term outcomes — lower unemployment, less social unrest, and healthier, better-educated populations — than those that implemented deep, across-the-board cuts.

The Bottom Line: We Can’t Afford to Cut What Matters Most

As public finance debates rage on, we need to remember: The goal of fiscal policy isn’t just to balance books — it’s to build a healthy, educated, safe society.

When we cut public services, we don’t just cut costs — we cut opportunities, health, and security. And in the long run, we pay more to fix the mess austerity creates.

If we want strong economies, cohesive societies, and a future we can believe in, we must invest in our people — not abandon them under the guise of fiscal responsibility.

Because in the end, a society is only as strong as the services it provides to its people — and we can’t afford to forget that.

Ramil Abbasov is a climate change and sustainability expert with over 14 years of experience in public finance management, climate finance, greenhouse gas emissions accounting, policy research, and economic analysis. He has worked closely with international organizations—including the United Nations Development Programme and the Asian Development Bank—to integrate climate risk assessments and mitigation strategies into financial governance frameworks.

Currently, Ramil serves as a Research Assistant at George Mason University, contributing to the NSF-funded Community-Responsive Electrified and Adaptive Transit Ecosystem (CREATE) project through quantitative data analysis and stakeholder engagement initiatives. Previously, he held key roles at the Asian Development Bank in Baku, Azerbaijan, where he excelled as both the National Green Budget Economy Expert and the National Public Finance Management Expert, driving efforts in climate budget tagging, green economy analysis, and sustainable development policy integration.

In addition to his work with multilateral institutions, Ramil is the CEO and Founder of “Spektr” Center for Research and Development, a research organization focused on advancing climate finance, energy transition, and sustainable economic policies. His earlier career includes leadership positions such as Director at ZE-Tronics CJSC and managerial roles in the banking sector with AccessBank CJSC and retail management with Third Eye Communications in the USA.