Friday, 8 July 2016


Karnataka witnessed a decline in its expenditure on key social sectors — education and health — between 2000 and 2016, while several States either increased this expenditure or kept flat.

Though Karnataka’s budget size crossed Rs. 1 lakh crore in 2012–13, the State recorded a decline in expenditure in percentage terms in education and health sectors during 2000–01 to 2015–16 (budget estimates).

Expenditure on medical, public health and family welfare, as ratio to aggregate expenditure, declined from 5.1 per cent in 2000–01 to 4.4 per cent in 2015–16 and it was less than the national average of 4. per cent in 2015–16.

Highest in Rajasthan

The Reserve Bank of India’s report State Finances: A Study of Budgets (2016), which analyses the fiscal position of State governments on the basis of primary disaggregated State-wise data, revealed that the ratio of aggregate expenditure on education was highest in Rajasthan (6.8 per cent) and lowest in Bihar (4.1 per cent) in 2015–16.

The report examined the expenditure on social sectors during pre-crisis years (2003–04 to 2007–08), the global financial crisis (2008–09 to 2009–10) and post-crisis years (2010–11 to 2013–14) and said that “a disconcerting feature is the stagnation in expenditure on education and health.”

Expenditure on education in Karnataka

Expenditure on education in Karnataka, as ratio to aggregate expenditure, also declined. It declined from 17.7 per cent in 2000–01 to 14.4 per cent in 2015–16. The country’s average was 16.4 per cent. This expenditure was highest in Assam (special category State) at 20 per cent and lowest in Telangana (10 per cent) in 2015–16.

Expenditure on wages and salaries in Karnataka

The committed expenditure on wages and salaries in Karnataka increased from Rs. 49.7 billion in 2000–01 to Rs. 225.9 billion in 2015–16. Maharashtra spent the highest amount on granting wages and salaries to its staff (Rs. 722.1 billion) in 2015–16.
 Source: The Hindu 
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