Review of Social Sector Expenditures of States at Aggregate Level in India

In the present study, an attempt is made to examine the impact of state finances on some major social indicators of society, like health, education, water supply, sanitation, etc. Economic development not only considers the increase in real per capita income, but it also necessarily includes changes in social welfare indicators along with the change in economic indicators. Improvements in social indicators also exhibit the role, planning, and effective and efficient implementation of policies by the government mechanism. Therefore, it becomes a must to examine the impacts of economic indicators on the social indicators of the economy. Due to some limitations, this paper explains the pattern of expenditure on some important components of the social sector for states at the aggregate level. Secondary data and simple statistical tools like ratios and percentages have been used to explain the impact of state finances on some important indicators of society. A study found that capital expenditure on social services has been less than revenue expenditure, which demands the focus of government on the prioritization of development policies and an effective implementation system. JEL Code: H51, H52, H72, H75, H76