High expense on salary, pension hits spending by states, says research

On an average, salaries, pensions and interest payouts comprise 40% of the total expenditure

The spurt in expenses on salaries, pension and interest, is hurting states’ ability to earmark sufficient funds on socio-economic programmes and capital expenditures.

On an average, salaries, pensions and interest payouts comprise 40 per cent of the total expenditure. A study by CARE Ratings reveals that there are 12 states where the spending on the three components has surpassed 40 per cent of their overall expenditure. This has left the states with a shrinking expense pool for other critical areas.

In Himachal Pradesh, the share of committed expenditure is the highest at 61.9 per cent of the overall Budgeted spending. Kerala, with