Skip to main content

Model Gujarat fails to spend "enough" on social sector, especially education, reveals RBI's state budgets study

By Rajiv Shah
Is Gujarat government refusing to spend enough on social sector in accordance with its capacity, as reflected in its high value of the gross state domestic product (GSDP)? It would seem so, if the latest data, released by the Reserve Bank of India (RBI) in its “State Finances: A Study of State Budgets 2915-16”, are any indication.
The RBI study has found that, among the 18 states bracketed as “non-special category”, Gujarat’s spending in social sector as percentage of GSDP is one of the lowest in India – just about 5.9 per cent, as against the national average of 7.4 per cent.
Among the 18 non-special category states, the RBI data show, as many as 14 of them spend a higher on social sector as percentage of GSDP than .Two poorer states – Chhattisgarh and Bihar – are the best performers. They spend 15 and 12.3 per cent of GSDP respectively.
Interestingly, RBI has provided details of Gujarat’s failure to spend enough on the social sector as percentage of GSDP at a time when its overall social sector expenditure has been going up over the years. Thus, as percentage of total expenditure, Gujarat government spent 42.1 per cent in 2015-16, which is the highest since 2001.
However, a comparison with other states suggests that Gujarat’s spending on social sector as percentage of total budgetary expenditure is less than as many as 11 of the 18 non-special category states, with Chhattisgarh (56.8 per cent) and Jharkhand (49.3 per cent) spending the highest proportion of amount.
Relatively poor spending on social sector has come about, suggest RBI data, mainly because of Gujarat’s failure to spend enough on education – just about 15 per cent of the total budgetary spending. This is lower than 12 other states. The states which spend the most on education are – Chhattisgarh (19.4 per cent) and Maharashtra (19.1 per cent).
Interestingly, Gujarat’s expenditure on the health and family welfare is the second highest among the non-special category states, 5.9 per cent of the total budgetary expenditure, next to Rajasthan, 6.8 per cent.
The RBI study believes that higher government spending on public goods such as health and education has “a positive impact on per capita GSDP growth and reduced poverty.”, adding, the data suggest that “expenditure on the social sector is associated with large positive externalities.”
Noting that most of the expenditure made by states should go into social sector into creating social infrastructure, the study insists, “A major portion of social sector expenditure has been in the form of revenue expenditure rather than capital outlay.”
It regrets, in the social sector, “expenditure on physical infrastructure shows greater variability, with energy being the most volatile component.”
It believes, “The major concern is not only the deceleration of developmental capital outlay on social and economic services, but an absolute decline in capital outlay on services like family welfare, water supply and sanitation, housing, food storage and warehousing, industry and minerals and science, technology and environment.”
“As a consequence”, it says, “Social sector expenditure, which had increased in 2014-15, is budgeted to decline in 2015-16 in as many as 21 states. This does not augur well for the quality of human development.”

Comments

TRENDING

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Delhi HC rules in favour of retired Air Force officer 'overcharged' for Covid treatment

By Rosamma Thomas*  In a decision of May 22, 2023, the Delhi High Court ruled in favour of petitioner Group Captain Suresh Khanna who was under treatment at CK Birla Hospital, Gurugram, between April 28 and May 5, 2021, for a period of eight days, for Covid-19 pneumonia. The petitioner had to pay Rs 3,55,286 as treatment costs, but the Ex-Servicemen Contributory Health Scheme (ECHS) only reimbursed him for Rs 1,83,748, on the basis of government-approved rates. 

'Enough evidence' in Indian tradition to support legal basis for same-sex marriage

By Iyce Malhotra, Joseph Mathai, Sandeep Chachra*  The ongoing hearing in the Supreme Court on same-sex marriage provides space for much-needed conversations on issues that have hitherto remained “invisible” or engaged with patriarchal locker room humour. We must recognize that people with diverse sexualities and complex gender identities have faced discrimination, stigma and decades of oppression. Their issues have mainly remained buried in dominant social discourse, and many view them with deep insecurities.

Religious divide 'kept alive' with low intensity communalism in Gujarat's cultural capital

By Rajiv Shah  A fact-finding report, prepared by the Mumbai-based non-profit, Centre for Study of Society and Secularism (CSSS), has cited the Vadodara Ram Navami violence of March 30 as yet another example of how, after the BJP consolidating its hold on political power in Gujarat post-2002 riots and at the Centre in 2014, the nature of communal riots has changed, underlining, as opposed to high-intensity violence earlier, now riots have become “more sub-radar and at a smaller scale, more localized”.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Caste, impact on Ayodhya area 'halting' BJP rulers to act against Brij Bhushan Singh

By Vidya Bhushan Rawat*  Finally, the #WrestlersProtest has got international attention. The United World Wrestling (UWW),  condemning the treatment and detention of wrestlers and expressing its disappointment over the lack of results of the investigations against Brij Bhushan Singh, accused of sexually harassing women wrestlers, has urged the "relevant authorities to conduct a thorough and impartial investigation."

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Unlike other revolutionaries, Hindutva icon wrote 5 mercy petitions to British masters

By Shamsul Islam*  The Hindutva icon VD Savarkar of the RSS-BJP rulers of India submitted not one, two,or three but five mercy petitions to the British masters! Savarkarites argue: “There are no evidences to prove that Savarkar collaborated with the British for his release from jail. In fact, his appeal for release was a ruse. He was well aware of the political developments outside and wanted to be part of it. So he kept requesting for his release. But the British authorities did not trust him a bit” (YD Phadke, ‘A complex Hero’, "The Indian Expres"s, August 31, 2004)

76% Odisha govt school infrastructure in dilapidated state, 'undermine' RTE norms

By Our Representative  As many as 75.86% (5,421) elementary schools in Odisha do not possess a playground, depriving students of physical activity opportunities. Also, 75.68% (5,408) of schools require minor or major repairing, undermining the norms and standards stipulated in the Right to Education (RTE) Act.

Can India's water management infrastructure address gender vulnerability issues?

By Monami Bhattacharya, Megha Gupta, Mansee Bal Bhargava*  The climatic pattern of the earth is evolving and changing for a very long time, but in the recent times spanning this century, the change has been drastic which has raised serious concerns to all. Climate criss is also clearly manifested as gender crisis where women are more vulnerable besides being more voiceless to raise the issue. India is marked as a highly climate-vulnerable nation. In addition, the gender disparity in the patriarchal society seems deeply and naturally ingrained among all.