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Social Sector Expenditure in India in the 2000s: Trends and Implications

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  • Soumyadip Chattopadhyay

Abstract

Acknowledging the contribution of social infrastructure towards building up human capital, this article analyses the trend and pattern of social sector expenditure in India in the 2000s. Rhetorical commitment of successive Indian governments towards inclusive social development and poverty alleviation in the 2000s has not been backed up by adequate financial allocations and this has merely served to maintain the status quo on social sector spending. The new pattern of tax shares between the centre and states has resulted in higher inflow of ‘untied fund’ from the central government accompanied by lower allocations of ‘tied fund’. Subsequently, states have not exhibited any definitive sign of using their newly accrued fiscal autonomy to prioritise social sector expenditure. Along with greater public investment for development of human resources, this article emphasises on the need for appropriate monitoring and evaluation framework, and change in the budget making policy with greater involvement of people directly affected by changes in public policies related to social sector.

Suggested Citation

  • Soumyadip Chattopadhyay, 2018. "Social Sector Expenditure in India in the 2000s: Trends and Implications," Journal of Development Policy and Practice, , vol. 3(1), pages 16-40, January.
    • Handle: RePEc:sae:jodepp:v:3:y:2018:i:1:p:16-40
    DOI: 10.1177/2455133317740449
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    5. Sacchidananda Mukherjee & Debashis Chakraborty, 2017. "Can Economic Development Influence General Election Outcomes? Evidence from Consumption Expenditure Trends of Indian States," Journal of Development Policy and Practice, , vol. 2(2), pages 131-150, July.
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    Cited by:

    1. Fernanda Andrade de Xavier & Pranab Mukhopadhyay, 2023. "Can Fiscal Transfers Help India Meet Its SDG Goals?," South Asian Journal of Macroeconomics and Public Finance, , vol. 12(2), pages 218-249, December.
    2. Bose, Sukanya & Banerjee, Saikat, 2025. "Social Spending and Fiscal Policy in India: Towards an Alternate Macro-Fiscal Framework Integrating Human Development," Working Papers 25/422, National Institute of Public Finance and Policy.
    3. Subrat Sarangi & R. K. Renin Singh & Brajaballav Kar, 2022. "A comparative assessment of migrant and indigenous entrepreneurs on regional development: A case of Odisha, India," Growth and Change, Wiley Blackwell, vol. 53(1), pages 170-199, March.
    4. Sacchidananda Mukherjee & Shivani Badola, 2021. "Public Financing of Human Development in India: A Review," Indian Journal of Human Development, , vol. 15(1), pages 62-81, April.

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