Burgeoning expenses on salary, pension cripple spending by states

On an average, salaries, pension and interest payouts alone make up 40% of a state's total expenditure, leaving little room for spending in other critical areas

The spurt in expenses on salaries, pension and interest cost is hurting the ability of states to put aside sufficient funds for socio-economic programmes and capital expenditure.

On an average, the three components -- salaries, pension and interest payouts make up 40 per cent of a state's total expenditure. A study by CARE Ratings reveals there are 12 states where the spend on these three components has surpassed 40.5 per cent of 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