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Assessing Public Expenditure Efficiency at Indian States

Author

Listed:
  • Ranjan Kumar Mohanty

  • N.R. Bhanumurthy

Abstract

This paper attempts to understand what drives the public expenditure efficiency among the States. For this, it looks at the role of economic growth as well as quality of governance. The results of input-oriented and output-oriented DEA approach finds a large variation in the efficiency of public spending as well as scope for resource saving among Indian States. The results suggest that States are spending their resources more efficiently on education than on health and overall social sector spending. Further, it also finds that both quality of governance and economic growth affects the efficiency of education, health, and social sector with governance to have larger effect compared to growth. Overall, the study suggests that focus on good governance could yield better outcomes from public spending

Suggested Citation

  • Ranjan Kumar Mohanty & N.R. Bhanumurthy, 2018. "Assessing Public Expenditure Efficiency at Indian States," Working Papers id:12837, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12837
    Note: Institutional Papers
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    Cited by:

    1. Abiodun Adegboye & Olawale Daniel Akinyele, 2022. "Assessing the determinants of government spending efficiency in Africa," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    2. Ant—nio Afonso & João Tovar Jalles & Ana Venâncio, 2023. "Government spending efficiency, measurement and applications: A cross-country efficiency dataset," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 3, pages 44-71, Edward Elgar Publishing.
    3. Anup Kumar Yadava & Yadawananda Neog, 2022. "Public Sector Performance and Efficiency Assessment of Indian States," Global Business Review, International Management Institute, vol. 23(2), pages 493-511, April.
    4. Asma Saeed & Zahoor Ul Haq & Javed Iqbal, 2024. "Investigating the Factors Affecting Research and Development Expenditure Efficiency in China and India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2761-2771, March.
    5. António Afonso & João Tovar Jalles & Ana Venâncio, 2021. "Taxation and Public Spending Efficiency: An International Comparison," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(3), pages 356-383, September.
    6. Sudipto Mundle & Satadru Sikdar, 2019. "Subsidies, Merit Goods and the Fiscal Space for Reviving Growth: An Aspect of Public Expenditure in India," NCAER Working Papers 118, National Council of Applied Economic Research.
    7. Timilsina,Govinda R. & Sahoo,Pravakar & Dash,Ranjan Kumar, 2022. "Why Do Indian States Differ in Their Infrastructure Development ?," Policy Research Working Paper Series 10086, The World Bank.
    8. Raúl García-Gómez & Jorge Onrubia-Fernández & Antonio Jesus Sanchez-Fuentes, 2019. "Is public sector performance just a matter of money? The case of the Spanish regional governments," Economics and Business Letters, Oviedo University Press, vol. 8(2), pages 74-84.
    9. António Afonso & Ludger Schuknecht, 2019. "How “big” should government be?," EconPol Working Paper 23, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    10. Antonio Afonso & Ludger Schuknecht, 2019. "How “big†should government be?," Economics and Business Letters, Oviedo University Press, vol. 8(2), pages 85-96.
    11. Chiu, Shih-Yung & Hung, Hsiu-Wan & Yang, Chih-Yu & Chen, Chiu-Mi & Chiu, Yung-ho, 2025. "Strategies to control corruption in economic development: The role of government spending and public satisfaction," Socio-Economic Planning Sciences, Elsevier, vol. 98(C).
    12. Malhotra, Shefali & Patnaik, Ila & Roy, Shubho & Shah, Ajay, 2018. "Fair play in Indian Health Insurance," Working Papers 18/228, National Institute of Public Finance and Policy.
    13. Carolina Bloch, 2020. "Social spending in South Asia—an overview of government expenditure on health, education and social assistance," Research Report 44, International Policy Centre.

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    Keywords

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    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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