Social Expenditures at Sub-National Level: An Experience from Indian State of Odisha

Quaderni - Working Paper DSE No. 998

18 Pages Posted: 29 Mar 2015

See all articles by Pareswar Sahu

Pareswar Sahu

Sambalpur University - P.G. Department of Economics

Sushanta Mahapatra

University of Bologna - Department of Economics

Date Written: March 27, 2015

Abstract

The composition and trends of social expenditures at sub-national level in India has been examined using the secondary data from 1987-88 to 2013-14 of the state of Odisha. The composition shows (1) the insignificant share of productive social expenditures, (2) significant share of education relegating the role of health care and (3) higher priority of transfer payments relative to the level of employment and health. The comparative analysis of the composition between pre- and post-restructuring period indicates the shifting of priority from education and health towards transfer payments in the later than the former period. The level of social expenditures has been declined over the time period leading to excessive contraction of educational expenditures. The decline in the level of social expenditures is attributed to the use of implicit loopholes of the efficiency criteria used for the devolution of federal transfers. For the economic development of the state increased level of social expenditures, higher priority of education and health and reform in the efficiency criteria used for the devolution of transfers are of crucial need of the hour.

Keywords: social expenditures, health, education, transfer payments, efficiency criteria

JEL Classification: I32, I10, I20, H10, G10

Suggested Citation

Sahu, Pareswar and Mahapatra, Sushanta, Social Expenditures at Sub-National Level: An Experience from Indian State of Odisha (March 27, 2015). Quaderni - Working Paper DSE No. 998, Available at SSRN: https://ssrn.com/abstract=2586026 or http://dx.doi.org/10.2139/ssrn.2586026

Pareswar Sahu (Contact Author)

Sambalpur University - P.G. Department of Economics ( email )

Jyoti Vihar
Sambalpur, Orissa 768019
India

Sushanta Mahapatra

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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