Major Research Project on Social Sector Expenditure in Karnataka with Special Reference to Education and Health

Major Research Project on Social Sector Expenditure in Karnataka with Special Reference to Education and Health

Principal Investigator

Dr Rajeshwari U R

Assistant Professor,




Emmanual P J

Assistant Professor,

Department of Economics

CHRIST (Deemed to be University) Bangalore – 560029





Social sector which consists of sub -sectors like Education, Health, Housing, and Water Supply is very essential for the economic development of any country. Social development paves the way for economic development. Most of the social sector subjects fall within the purview of the States, for which funding is provided through the Centrally Sponsored Schemes. The Government plays a very significant part in the development of the Social Sector. In India, a large segment of population depends on public provision of health and education. Public investment is not only crucial but also expected to be high in this respect. According to World Health Report 2005, per capita health expenditure in India (Rs. 96) is much lower than that of others countries like China, US (Rs. 261 and Rs. 5274 respectively) and others. In fact, interstate studies show that there exists an inequality among the states in terms of per capita social sector expenditure. Per capita expenditure of Kerala, Tamil Nadu and Maharashtra are much higher than that of Bihar, MP and UP.


In Karnataka, an analysis of the expenditure in the social sector shows that between 1991-92 and 2013-14, social sector spending has slightly increased from 5.23 per cent of GSDP to 7.03 per cent of GSDP. Revenue expenditure is contained within the revenue resources creating elbow room for increased capital expenditure. The share of development expenditure, has been on an increase and reached its peak in 2007-08 (14.07 percent), but subsequently declined- largely caused by the decline in the share of economic services that had touched its peak in 2007-08 (8.07 percent) and declined sharply after that . Social services has increased during all the years, however as it can be observed from the subsequent analysis, some items of expenditure under social services experienced a declined share. Share of committed payments such as interest payments, wage bill has declined. Adversely, the subsidy bill has increased. While these are very good trends, the past experience and that of the last two years (caused by the economic downturn) reveal that the capital investments and the social and economic services receive are largely influenced by changes in the revenue position.

Education, which constitutes the largest share in the social and community services has largely declining share in the total along with the health and family welfare and water supply and sanitation services. The share of housing and urban development have been largely on the increase, while that of social security and welfare and social welfare and nutrition services have had a declined share during the major part of nineties, currently they are on a sharp rise. While no value judgments can be made on these kinds of varying kinds of importance assigned to the sectors by the government in the absence of any meaningful outcome information, it is imperative to know whether these are guided by any informed assessment of the sectoral needs and priorities. There are many schemes of this kind in other sectors like provision of bicycles to girl children which has now been extended to boys also. It is in this context, this study could probe into how inter and intra sector expenditure allocations are currently framed and also suggest alternative ways to improve the same. This is very important in view of the fact that effectiveness of government interventions is to a large extent guided by a proper expenditure planning.


On the other hand, the schemes like Sarva Siksha Abhiyan (SSA) and National Rural Health Mission (NRHM) gave a statutory base for education and health. SSA, launched in 2001-02, addresses the educational needs of children in the age-group of 6-14 years by strengthening educational infrastructure in terms of opening of new schools, construction, renovation and expansion of school buildings and providing other amenities like text books etc. Similarly in order to provide health security, especially to women, children and the poor residing in rural areas, NRHM was launched in 2005. It adopts a synergistic approach covering vital determinants of health like nutrition, sanitation, hygiene and safe drinking water. Its major goal is to reduce infant and maternal mortality rate, prevention of communicable and non-communicable diseases etc. The contribution of SSA and NRHM to health and education expenditure at the State-level has been significant in recent years.


However, the share of the Central government in total social sector expenditure, especially in health and education, is still small and the primary responsibility for provision lies with the states. From all indications such performance has been inadequate. In this context, this study analyses the trend and pattern of public expenditure on social services and also analyses the inter-district disparities of educational development and health facilities. Further, this study analyses the performance of Sarva Siksha Abhiyan (SSA) and National Rural Health Mission (NRHM) in Bangalore Rural District.


Year of Publication: June 2014

ISBN:   978-93-82305-58-3

Major Research Project: Vol 9

Pages    xii, 89

Price: available on request

Funded by Centre for Research-Projects-CHRIST (Deemed to be University)

Published by Centre for Publications, CHRIST (Deemed to be University)