Social Sector Expenditure of States Pre & Post Fourteenth Finance Commission (2014-15 & 2015-16)

Summary

Concerns arose in India that states, after receiving a significantly increased and untied share of central taxes (42% from 32%), might neglect social sector spending in favor of physical infrastructure. This NITI Aayog paper analyzed central transfers to states and their social sector expenditure between 2014-15 and 2015-16 to investigate this. The study concluded that states generally received more resources (21.19% overall increase) and responsibly increased their social sector spending, which reached 6.58% of GDP in FY 2015-16.

Key Facts

Source Document

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