IDEAS home Printed from https://ideas.repec.org/a/spr/inrvec/v69y2022i1d10.1007_s12232-021-00382-0.html
   My bibliography  Save this article

Development goals, population demography and state expenditure on human priority sectors: a study of Indian major states

Author

Listed:
  • Rimon Saha

    (Centre for Development Studies
    Triveni Devi Bhalotia College)

  • Udaya S. Mishra

    (Centre for Development Studies)

Abstract

The paper examines the spending pattern of Indian states on human priority sectors (HPS) during 2001–2019 particularly stressing on its responsiveness towards the Development Goals and Population Demography. The observed expenditure pattern reveals that among all the major Indian States, Bihar is the most vulnerable state having the lowest spending and lowest growth rate of expenditures. We also find Water Sanitation and Family Welfare to be the most neglected subsectors of HPS as these sectors received only 3% of HPS expenditure on an average. Besides, the pattern also exposes the huge inter– state disparities in HPS expenditure, which is detected to be highest as regard Nutrition and has a rising trend for the Family Welfare component. Moreover, in response to Millennium Development Goals we find there was no significant change in spending pattern, however, we find mixed bearing of population demography on the HPS. For instance, states with a large base of rural population are observed to spend more on the priority sector, but contrary to the expectation, the size of the poor population has no bearing on the states’ allocation of resources. The findings of the paper are particularly significant for policy prescriptions to attain the Sustainable Development Goals as it offers sufficient evidence of negligence of timely spending on the HPS in response to the development goals and population composition. So, we find there is a need for introspection on HPS spending and its concurrent evaluation in terms of its allocation criterion and timing of allocation.

Suggested Citation

  • Rimon Saha & Udaya S. Mishra, 2022. "Development goals, population demography and state expenditure on human priority sectors: a study of Indian major states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(1), pages 21-47, March.
    • Handle: RePEc:spr:inrvec:v:69:y:2022:i:1:d:10.1007_s12232-021-00382-0
    DOI: 10.1007/s12232-021-00382-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12232-021-00382-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12232-021-00382-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:ilo:ilowps:164876 is not listed on IDEAS
    2. Kelley AC., 1976. "Demographic change and the size of the government sector," ILO Working Papers 991648763402676, International Labour Organization.
    3. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    4. David Bloom & David Canning, 2003. "Health as Human Capital and its Impact on Economic Performance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 28(2), pages 304-315, April.
    5. Sanjeev Gupta & Marijn Verhoeven & Erwin R. Tiongson, 2003. "Public spending on health care and the poor," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 685-696, August.
    6. Sang-Hyop Lee & Jungsuk Kim & Donghyun Park, 2017. "Demographic Change and Fiscal Sustainability in Asia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 287-322, October.
    7. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    8. Ueli Grob & Stefan C. Wolter, 2007. "Demographic Change and Public Education Spending: A Conflict between Young and Old?," Education Economics, Taylor & Francis Journals, vol. 15(3), pages 277-292.
    9. Mr. Emanuele Baldacci & Mr. Larry Q Cui & Mr. Benedict J. Clements & Mr. Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    10. Bharatee Dash & Angara Raja, 2013. "Do political determinants affect the size and composition of public expenditure? A study of the Indian states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(3), pages 293-317, September.
    11. McArthur, John W. & Rasmussen, Krista, 2018. "Change of pace: Accelerations and advances during the Millennium Development Goal era," World Development, Elsevier, vol. 105(C), pages 132-143.
    12. Cruz, Marcio & Ahmed, S. Amer, 2018. "On the impact of demographic change on economic growth and poverty," World Development, Elsevier, vol. 105(C), pages 95-106.
    13. Alina-Cristina Nuță & Florian-Marcel Nuță, 2020. "Modelling the Influences of Economic, Demographic, and Institutional Factors on Fiscal Pressure Using OLS, PCSE, and FD-GMM Approaches," Sustainability, MDPI, vol. 12(4), pages 1-12, February.
    14. Das, Pranab Kumar & Kar, Saibal, 2016. "Public Expenditure, Demography and Growth: Theory and Evidence from India," IZA Discussion Papers 9721, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrik Rovný & Serhiy Moroz & Jozef Palkovič & Elena Horská, 2021. "Impact of Demographic Structure on Economic Development of Ukrainian Coastal Regions," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    2. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government expenditures, social outcomes, and marginal productivity of agricultural inputs: a case study for Tanzania," IFPRI discussion papers 1172, International Food Policy Research Institute (IFPRI).
    3. Bharatee Dash & Angara Raja, 2014. "Do political determinants affect revenue collection? Evidence from the Indian states," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(3), pages 253-278, September.
    4. M. R. Narayana, 2018. "Accounting for Growth Effects of Age Structure Transition through Public Education Expenditure: New Macroeconomic Evidence from India," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(2), pages 174-211, December.
    5. Niklas Potrafke, 2006. "Parties Matter in Allocating Expenditures: Evidence from Germany," Discussion Papers of DIW Berlin 652, DIW Berlin, German Institute for Economic Research.
    6. Issa Dianda & Idrissa Ouedraogo, 2021. "The synergistic effect of government health spending and institutional quality on health capital accumulation in WAEMU countries," Economics Bulletin, AccessEcon, vol. 41(2), pages 495-506.
    7. Yu Sang Chang & Moon Jung Kim & Su Min Kim & Sung Jun Jo, 2023. "The Offsetting Impact of Dependency and Urbanization on Mean Years of Schooling: A Scaling Analysis of 97 Countries," SAGE Open, , vol. 13(2), pages 21582440231, April.
    8. Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ,Jason Daniel & Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ, 2015. "Transport infrastructure and welfare : an application to Nigeria," Policy Research Working Paper Series 7271, The World Bank.
    9. Ali, Mumtaz & Prasad, Ramendra & Xiang, Yong & Deo, Ravinesh C., 2020. "Near real-time significant wave height forecasting with hybridized multiple linear regression algorithms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    10. Meghamrita Chakraborty, 2023. "Linking Migration, Diversity and Regional Development in India," Journal of Development Policy and Practice, , vol. 8(1), pages 55-72, January.
    11. Alexis Habiyaremye, 2008. "Economic Proximity and Technology Flows: South Africa's Influence and the Role of Technological Interaction in Botswana's Diversification Effort," WIDER Working Paper Series RP2008-92, World Institute for Development Economic Research (UNU-WIDER).
    12. Müller, Karsten, 2020. "German forecasters' narratives: How informative are German business cycle forecast reports?," Working Papers 23, German Research Foundation's Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour", Humboldt University Berlin.
    13. Paolo Di Caro & Roberta Arbolino & Ugo Marani, 2018. "A note on the effects of human capital policies in Italy during the Great Recession," Economics Bulletin, AccessEcon, vol. 38(3), pages 1302-1312.
    14. Mattos, Enlinson & Rocha, Fabiana & Toporcov, Patricia, 2013. "Programas de incentivos fiscais são eficazes? Evidência a partir da avaliação do impacto do programa nota fiscal paulista sobre a arrecadação de ICMS," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 67(1), April.
    15. Bruno Amable & Donatella Gatti & Jan Schumacher, 2006. "Welfare-State Retrenchment: The Partisan Effect Revisited," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(3), pages 426-444, Autumn.
    16. Andreas Stephan, 1997. "The Impact of Road Infrastructure on Productivity and Growth: Some Preliminary Results for the German Manufacturing Sector," CIG Working Papers FS IV 97-47, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    17. Geddes, R. Richard & Wagner, Benjamin L., 2013. "Why do U.S. states adopt public–private partnership enabling legislation?," Journal of Urban Economics, Elsevier, vol. 78(C), pages 30-41.
    18. Chakraborty, Lekha, 2014. "Gender responsive budgeting, as fiscal innovation: Evidence from India on "Processes"," Working Papers 14/128, National Institute of Public Finance and Policy.
    19. Krause, Werner & Giebler, Heiko, 2020. "Shifting Welfare Policy Positions: The Impact of Radical Right Populist Party Success Beyond Migration Politics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 56(3), pages 331-348.
    20. Doğan Barak & Mustafa Ünlü, 2024. "Economic Policy Uncertainty and Remittance Nexus: Evidence From Top 10 Remittance-receiving Countries," Politická ekonomie, Prague University of Economics and Business, vol. 2024(4), pages 653-675.

    More about this item

    Keywords

    Development goals; Population demography; State expenditure; Human priority sectors; Indian states;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    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:inrvec:v:69:y:2022:i:1:d:10.1007_s12232-021-00382-0. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.