IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-981-96-2860-5_8.html
   My bibliography  Save this book chapter

Interplay of Prioritisation of Public Expenditure on Health and Education and Absorption Capacity of the Indian States

Author

Listed:
  • Deyona Rose Saji

    (Centre for Economic Studies and Policy, Institute for Social and Economic Change)

  • S. Madheswaran

    (Centre for Economic Studies and Policy, Institute for Social and Economic Change)

Abstract

This study aims to answer the two major policy questions: what determines the prioritisation of a sector in government expenditures? and how are the changes in macro-fiscal variables affecting the changes in public spending towards health and education? It examines the role of major fiscal factors and the state’s capacity in prioritising the health and education sectors of sub-national governments in India, using the Panel ARDL-PMG model. The results indicate that the state’s capacity is crucial in determining the spending towards health and education. The positive and significant long-run relationship between the government health/education expenditure and HDI, suggests the need to create human capacities in the states to better absorb the expenditures by the government. The effects of short-run lagged values of fiscal deficits, own tax revenues, and grants received from the centre indicate the need to create fiscal space among the states.

Suggested Citation

  • Deyona Rose Saji & S. Madheswaran, 2025. "Interplay of Prioritisation of Public Expenditure on Health and Education and Absorption Capacity of the Indian States," India Studies in Business and Economics,, Springer.
    • Handle: RePEc:spr:isbchp:978-981-96-2860-5_8
    DOI: 10.1007/978-981-96-2860-5_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:isbchp:978-981-96-2860-5_8. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.