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Question

Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth?

This question was previously asked in
UPSC CSE 2024 (Prelims) CSAT Previous Year Paper (16-Jun-2024)

Post-reforms, India's public expenditure on social services initially showed restraint in the 1990s, driven by fiscal consolidation. However, from the early 2000s, a significant upward trend emerged. This was marked by increased allocations to key sectors like education (Sarva Shiksha Abhiyan), health (National Rural Health Mission), and rural development (MGNREGA), often adopting rights-based frameworks. As a percentage of GDP, it has generally risen, reflecting a renewed focus.

To a substantial extent, this trend has been in consonance with achieving inclusive growth. This expenditure has undeniably contributed to significant poverty reduction, improved literacy and health outcomes for many. Access to basic services like sanitation and education has broadened, directly benefiting marginalized communities and promoting equity.

However, the consonance isn't absolute. Quality of service delivery, persistent regional disparities, and high out-of-pocket health expenditures remain challenges. Implementation gaps and leakages also dilute the full impact. Benefits haven't universally reached all, especially the most vulnerable, indicating scope for more targeted and efficient spending to truly realize comprehensive inclusive growth.


 

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Harsh Raj

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