SOCIAL SECTOR EXPENDITURE

India’s expenditure on social sectors has not reflected a major increasing trend during the past few years (2008-2016), an increase in expenditure per- se may not always guarantee appropriate outcomes and achievements. The efficiency of expenditure incurred so far can be assessed by the performance of social sectors through various social indicators. An overall assessment of social sector expenditures in terms of achievements shows that wide gaps still exist in educational and health outcomes and there is need for substantial improvement and the need to remove inequalities in the country.

The latest data18 regarding General Government (i.e., Centre plus States) expenditures of India on the “social sector” for the year 2016-17 (BE, i.e., Budget Estimates) were as given below:

(i) Total expenditure—28.4 per cent of the GDP (28.2 per cent in previous year).

(ii) Expenditure on social services—

7.0 per cent of GDP (6.9 per cent in the previous year).

(iii) Expenditure of education—2.9 per cent of GDP (same as in the previous year).

(iv) Expenditure on health—1.4 per cent of GDP (1.3 per cent in the previous year).

The year 2014-15, for which the latest actual figures are available, did show a significant decline from the revised estimates (RE) due to a large decrease in the actual social sector expenditure done by the states (from the revised estimates). This is matter of concern and adequate steps are needed in this direction to correct this anomaly.