Government Expenditure on Social Sector as % of GDP

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An important feature of social sector expenditure in India is that the Central government’s share is only about 20 per cent of the total expenditure, the rest being undertaken by the States. In other words, it is the ability of the States, rather than the Centre, to spend on social services that matters more for human development. In other words, the Central government’s allocations are not large enough to make any dramatic impact on the social sector as a whole unless they are accompanied by a rise in the States’ expenditures, too.

Yet, recent discussions on social sector allocations in India have been disproportionately focussed on the initiatives of the Central government. This shift of focus has been associated with the emergence of a number of Central sector schemes after 2004, such as the National Rural Employment Guarantee Scheme (NREGS), the National Rural Health Mission (NRHM) and the Sarva Shiksha Abhiyan (SSA). The desirability of expanding Central sector schemes, independent of the initiatives of the State governments, has been questioned by a number of scholars. Nevertheless, Central sector schemes have continued to grow in number and scope. In Budget 2009-10, too, the major social sector allocations have been channelled through the recently introduced Central sector schemes.

Source: http://www.hinduonnet.com/fline/fl2615/stories/20090731261501500.htm

Read more on the socio-economic profile of India at: http://india-reports.com/summary/socio.aspx

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