Social Sector Expenditure of States Pre & Post Fourteenth Finance Commission
- Alok Kumar, Ajay Nema, Jagat Hazarika, Himani Sachdeva
- NITI Aayog
- India
The fiscal year 2015-16 saw a disruptive change in the Centre-State financial relationship with the Government accepting the Fourteenth Finance Commission’s (FFCs) recommendation of a substantially higher devolution to States. This paper seeks to analyze this change and its impact on expenditure on Social Sector in 2015-16 in comparison with 2014-15 based on information available in the Union and the State Budget Documents, Financial Statements/ data provided by the States to NITI Aayog. It reviews the total fiscal transfers to the States for this period. It analyzes the quantum of Social Sector Expenditure across countries, within the country and across States’ for this particular period scaled by their Gross State Domestic Product (GSDP) and total expenditure. Further, the paper also discusses the State-wise expenditure on health and education. It maps the change in total transfers to change in social sector expenditure of States for this period and sums up with way forward.
