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An Analysis of Pattern and Determinants of Public Expenditure on Health in Andhra Pradesh, India

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  • T Subba Lakshmi
  • Prasant Kumar Panda
  • Himanshu Sekhar Rout

Abstract

The paper seeks to analyze the pattern and determinants of public expenditure on health in Andhra Pradesh, India, considering a dataset for the period 1985-2005. Simple ratios, percentage methods and multiple regression technique are adopted in the study. It is found that the health expenditure in absolute terms increased remarkably during the study period in Andhra Pradesh, but as a ratio of total government expenditure and social service expenditure in the state, it showed a decreasing trend. The share of capital expenditure is found to be low. The determinant analysis suggests that the increase in health expenditure has been determined by factors like per capita income, literacy rate and population rather than fiscal deficit and infant mortality rate. The percentage GDP spending on health in the state is around 1, which is low and can be increased by following a suitable mechanism in increasing resource efficiency. This would also help to increase capital investments in health sector in terms of opening up additional hospitals in the backlog areas.

Suggested Citation

  • T Subba Lakshmi & Prasant Kumar Panda & Himanshu Sekhar Rout, 2012. "An Analysis of Pattern and Determinants of Public Expenditure on Health in Andhra Pradesh, India," The IUP Journal of Public Finance, IUP Publications, vol. 0(1), pages 22-35, February.
    • Handle: RePEc:icf:icfjpf:v:10:y:2012:i:1:p:22-35
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    Cited by:

    1. Priya Ranjan & Prasant Kumar Panda, 2022. "Pattern of Development Spending and Its Impact on Human Development Index and Gross State Domestic Product in Low-income States in India," Journal of Development Policy and Practice, , vol. 7(1), pages 71-95, January.

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