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? (Answer in 150 words)

Pattern and Trend of Public Expenditure on Social Services in Post-Reforms India

  1. Increase in Allocation: Post-1991 economic reforms, there has been a significant increase in public expenditure on social services, particularly in health, education, and welfare programs.
  2. Focus on Social Sectors: The government prioritized social sectors to improve human capital, reflected in schemes like the Mid-Day Meal Scheme and the National Health Mission.
  3. Rural vs. Urban Disparities: Despite increased spending, the distribution has been uneven, with rural areas often receiving less attention compared to urban centers, impacting overall inclusiveness.
  4. Central vs. State Spending: A growing share of social expenditure is managed by state governments, leading to variability in implementation and effectiveness across states.

Consonance with Inclusive Growth

  1. Poverty Alleviation: Enhanced spending on social services has contributed to poverty reduction, although disparities remain.
  2. Employment Generation: Initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have provided livelihoods, promoting inclusive growth.
  3. Challenges: Despite increased expenditure, challenges such as corruption, inefficient delivery, and inadequate infrastructure hinder achieving full inclusiveness.

In conclusion, while public expenditure on social services has risen, addressing disparities and enhancing efficiency is essential to align with the goal of inclusive growth.

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