IDEAS home Printed from https://ideas.repec.org/p/npf/wpaper/22-369.html
   My bibliography  Save this paper

The "Scissors Effect" of COVID 19 Pandemic on State Finances: Emerging Evidence on Expenditures

Author

Listed:
  • Choudhury, Mita

    (National Institute of Public Finance and Policy)

  • Datta, Pritam

    (National Institute of Public Finance and Policy)

Abstract

The COVID pandemic imposed dual pressures on state finances. Contraction in revenues was coupled with an increased pressure to expand public spending to counter the adversities of the pandemic. Evidence from 26 states suggest that aggregate revenues fell by about 5 per cent in the pandemic year, 2020-21. Despite this fall, States have maintained a 5 per cent average growth rate of aggregate spending. Public expenditure in social sector grew at a significantly higher rate than economic services. Within social services, health expenditure in 15 selected major states grew at 16 per cent, the highest among all. This rise in health spending has however, come at the cost of expenditures in a number of other important sectors. Expenditures in education and nutrition remained nearly stagnant in the pandemic year.

Suggested Citation

  • Choudhury, Mita & Datta, Pritam, 2022. "The "Scissors Effect" of COVID 19 Pandemic on State Finances: Emerging Evidence on Expenditures," Working Papers 22/369, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:22/369
    Note: Working Paper 369, 2022
    as

    Download full text from publisher

    File URL: https://nipfp.org.in/media/medialibrary/2022/01/WP_369_2022.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mukherjee, Sacchidananda & Badola, Shivani, 2021. "Public Finance Management in India in the time of COVID-19 Pandemic," Working Papers 21/337, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chakraborty, Lekha, 2022. "Covid19 and Unpaid Care Economy: Evidence on Fiscal Policy and Time Allocation in India," Working Papers 22/372, National Institute of Public Finance and Policy.
    2. Mukherjee, Sacchidananda, 2022. "State Finances in India - Analysis of Budget 2022-23 of Major States," MPRA Paper 113955, University Library of Munich, Germany.
    3. Mukherjee, Sacchidananda, 2022. "Analysis of State Budgets 2022-23 of Major States in India," Working Papers 22/386, National Institute of Public Finance and Policy.
    4. Mathur, Ritu & Jaitli, Namrata & Amarnath HK,, 2022. "Child Development Index in India: Performance at District Level," Working Papers 22/371, National Institute of Public Finance and Policy.
    5. Mathur, Ritu & Jaitli, Namrata & Amarnath HK,, 2022. "Estimating Child Development Index in India at the District Level - A Methodology," Working Papers 22/370, National Institute of Public Finance and Policy.

    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. Mukherjee, Sacchidananda, 2022. "State Finances in India - Analysis of Budget 2022-23 of Major States," MPRA Paper 113955, University Library of Munich, Germany.
    2. Mukherjee, Sacchidananda, 2021. "Revenue Shortfall and GST Compensation: An Assessment," Working Papers 21/356, National Institute of Public Finance and Policy.
    3. Mukherjee, Sacchidananda, 2022. "Analysis of State Budgets 2022-23 of Major States in India," Working Papers 22/386, National Institute of Public Finance and Policy.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:npf:wpaper:22/369. 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: S.Siva Chidambaram (email available below). General contact details of provider: http://www.nipfp.org.in .

    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.