IDEAS home Printed from https://ideas.repec.org/a/sae/revdev/v29y2024i1p67-85.html

Social Expenditures in Odisha: Populism Versus Human Capital Formation

Author

Listed:
  • Sushanta Kumar Mahapatra
  • Pareswar Sahu

Abstract

This article examines the level, composition and trends of social expenditures at the subnational level in India using the secondary data of Odisha from 1990–91 to 2016–17 due to the low level of economic development in the state. The level of social expenditures of Odisha is better than those of the 14 major states of the country. However, it is not sufficient for the development of the state due to its declining trend and a small proportion of capital account social expenditures. Regarding the composition of social expenditures, a substantial proportion is incurred on populism rather than human capital formation. Social expenditures deviate from human capital formation to populism with time. Further emphasis is shifted towards economic services from social expenditures in the total expenditures. The ruling party used the strategy of populism to win seats in the state legislature keeping in mind the high proportion of the poor, illiterates and poor farmers in the state, where a direct relationship exists between human capital formation and winning seats in the legislature. To ensure economic development, the state should strive to improve its human capital formation and refrain from populist measures.

Suggested Citation

  • Sushanta Kumar Mahapatra & Pareswar Sahu, 2024. "Social Expenditures in Odisha: Populism Versus Human Capital Formation," Review of Development and Change, , vol. 29(1), pages 67-85, June.
    • Handle: RePEc:sae:revdev:v:29:y:2024:i:1:p:67-85
    DOI: 10.1177/09722661241252948
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09722661241252948
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09722661241252948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chor Foon TANG & Yew Wah LAI, 2011. "The Causal Relationship between Health and Education Expenditures in Malaysia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(8(561)), pages 61-74, August.
    2. Mr. David Coady & Mr. Sanjeev Gupta, 2012. "Income Inequality and Fiscal Policy," IMF Staff Discussion Notes 2012/008, International Monetary Fund.
    3. Sacchidananda Mukherjee & Satadru Sikdar & Debashis Chakraborty, 2014. "Three Decades of Human Development across Indian States: Inclusive Growth or Perpetual Disparity?," Working Papers id:5929, eSocialSciences.
    4. Rudiger Dornbusch & Sebastian Edwards, 1991. "The Macroeconomics of Populism," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 7-13, National Bureau of Economic Research, Inc.
    5. Imran HUSSAIN & Ramesh CHANDRA DAS, 2023. "Human Capital Formation And Economic Growth Relationships: Panel Data Insights For The Indian States," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 57-71, June.
    6. Lora, Eduardo & Olivera, Mauricio, 2007. "Public debt and social expenditure: Friends or foes?," Emerging Markets Review, Elsevier, vol. 8(4), pages 299-310, December.
    7. Weili Ding & Steven F. Lehrer, 2007. "Do Peers Affect Student Achievement in China's Secondary Schools?," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 300-312, May.
    8. Rudiger Dornbusch & Sebastian Edwards, 1991. "Introduction to "The Macroeconomics of Populism in Latin America"," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 1-4, National Bureau of Economic Research, Inc.
    9. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    10. Rudiger Dornbusch & Sebastian Edwards, 1991. "The Macroeconomics of Populism in Latin America," NBER Books, National Bureau of Economic Research, Inc, number dorn91-1, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ntentas, Raphael, 2021. "Quantifying political populism and examining the link with economic insecurity: evidence from Greece," LSE Research Online Documents on Economics 112579, London School of Economics and Political Science, LSE Library.
    2. Seghezza, Elena & Pittaluga, Giovanni B., 2018. "Resource rents and populism in resource-dependent economies," European Journal of Political Economy, Elsevier, vol. 54(C), pages 83-88.
    3. Matevž (Matt) Rašković & Katalin Takacs Haynes & Anastas Vangeli, 2024. "The emergence of populism as an institution and its recursive mechanisms: A socio-cognitive theory perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 7(1), pages 19-40, March.
    4. Pablo García S. & Camilo Pérez N., 2017. "Desigualdad, inflación, ciclos y crisis en Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 44(2 Year 20), pages 185-221, December.
    5. Giovanni Andrea Cornia, 2012. "The New Structuralist Macroeconomics and Income Inequality," Working Papers - Economics wp2012_25.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    6. Emilio Ocampo, 2020. "What Kind of Populism is Peronism?," CEMA Working Papers: Serie Documentos de Trabajo. 732, Universidad del CEMA.
    7. Emilio Ocampo, 2021. "A Brief History of Hyperinflation in Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 787, Universidad del CEMA.
    8. Anand, Kartik & Gai, Prasanna & König, Philipp Johann, 2020. "Leaping into the dark: A theory of policy gambles," Discussion Papers 07/2020, Deutsche Bundesbank.
    9. repec:spo:wpmain:info:hdl:2441/1divsbu8t888r9vqektjbmlqoa is not listed on IDEAS
    10. Federico Faveretto & Donato Masciandaro, 2018. "Financial Inequality, group entitlements and populism," BAFFI CAREFIN Working Papers 1892, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    11. Raphael Ntentas, 2021. "Quantifying Political Populism and Examining the Link with Economic Insecurity: evidence from Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 165, Hellenic Observatory, LSE.
    12. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777, June.
    13. Feliz, Raul Anibal & Welch, John H., 1997. "Cointegration and tests of a classical model of inflation in Argentina, Bolivia, Brazil, Mexico, and Peru," Journal of Development Economics, Elsevier, vol. 52(1), pages 189-219, February.
    14. Alogoskoufis, George, 2024. "Before and after the political transition of 1974: institutions, politics, and the economy of post-war Greece," LSE Research Online Documents on Economics 124056, London School of Economics and Political Science, LSE Library.
    15. Pan, Wei-Fong, 2023. "Household debt in the times of populism," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 202-215.
    16. Sergei Guriev, 2020. "Labor market performance and the rise of populism," World of Labour, LISER, pages 479-479, July.
    17. Jeffrey A. Frankel, 1993. "Monetary regime choices for a semi-open country," Pacific Basin Working Paper Series 93-02, Federal Reserve Bank of San Francisco.
    18. Joaquin Vial, 2018. "Globalisation and the Chilean economy," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and deglobalisation, volume 100, pages 83-100, Bank for International Settlements.
    19. Benczes, István & Szijártó, Norbert, 2024. "Államháztartási kiadások alakulása populista kormányok alatt Kelet-Közép-Európában [Public expenditure under populist governments in Central and Eastern Europe]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1001-1031.
    20. Rajakaruna, Iwanthika & Suardi, Sandy, 2021. "The dynamic linkages between current account deficit and budget balance deficit in the South Asian region," Journal of Asian Economics, Elsevier, vol. 77(C).
    21. Nicolás Cachanosky & Emilio Ocampo & John D. Gibson, 2024. "Can dollarization mitigate the macroeconomic cost of populism? Lessons from Latin America," CEMA Working Papers: Serie Documentos de Trabajo. 888, Universidad del CEMA.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:revdev:v:29:y:2024:i:1:p:67-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.