Examine the pattern and trend of public expenditure on Social Services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth? (2024, 10 Marks)

Paper	GS Paper 3
Word Limit	150 words
Syllabus Topic	Economy – Inclusive growth; government budgeting

Model Answer

Social services cover education, health, nutrition, housing, water and social security. Most of this spending is done by States. Its path since the 1991 reforms shows clear phases.

Pattern and Trend

• 1990s: Fiscal stabilisation kept social spending low.
• 2000s: Rights-based push – SSA, NRHM, MGNREGA, RTE Act (2009), NFSA (2013).
• After 2014: Focus on assets and services – Swachh Bharat, PMAY, Ayushman Bharat, Jal Jeevan Mission; wider use of DBT.
• 2020 onwards: Free food grains under PMGKAY; higher health spending.

Link with Inclusive Growth

• Positive: NITI Aayog estimates 24.82 crore people escaped multidimensional poverty between 2013-14 and 2022-23.
• Gaps: Health spending is below the NHP 2017 goal of 2.5% of GDP. Education is below the NEP 2020 goal of 6%.
• High out-of-pocket expenditure, weak learning outcomes and wide gaps between States remain.

Conclusion

Spending has grown and widened its reach, but quality lags. Better outcomes per rupee are key to truly inclusive growth.

Related PYQs

• What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (2017)
• The public expenditure management is a challenge to the government of India in the context of budget-making during the post-liberalization period. Clarify it. (2019)
• Is inclusive growth possible under market economy ? State the significance of financial inclusion in achieving economic growth in India. (2022)