Social Sector Expenditures on Education and HDI: Evidence From Selected Indian States

Abstract

The assertions of the government that poverty eradication and social development generally are the main challenges and that it is fully committed to address these issues have continued over time. But how genuine this claim is a matter of great concern. So, this chapter may be an attempt to analyze patterns in social sector expenditure on education (SSEE) and its impact on Human Development Index (HDI) among different states in India. The combined social sector expenditures (SSE) of Centre and States, which provide the best picture of India’s commitment towards the social sector in education, may be assessed. There are diverse ways of inspecting the trends in expenditures. Firstly, to look at SSE as a proportion of gross state domestic product (GSDP), secondly is to calculate SSE as percentage of aggregate budget expenditure, thirdly is to look at the real per capita expenditure (PCE) (at constant prices) for the social sector in the case of the states. This chapter looks at the trends in SSEE, considering all the alternative ways and the impact of SSEE on HDI. The result of the study shows that there is a positive relationship between SSEE and HDI. SSEE may lead to increases in gross enrolment ratio (GER) and literacy rate (LR). An increase in GER and LR may help in increasing the HDI.

Citation

Chakraborty, C. and Maity, A. (2023), "Social Sector Expenditures on Education and HDI: Evidence From Selected Indian States", Das, R.C. (Ed.) Inclusive Developments Through Socio-economic Indicators: New Theoretical and Empirical Insights, Emerald Publishing Limited, Leeds, pp. 245-254. https://doi.org/10.1108/978-1-80455-554-520231020