Health, education spending by states trails economy's nominal growth rates

State governments have consistently underspent on health and education, trailing the economy's nominal growth. Despite rising demands, priorities remain unchanged, as data reveals concerning trends

Spending on health and education infrastructure by all state governments has trailed the nominal growth of the Indian economy for a long time. While political parties trade charges over consistent underspending on these two key sectors, the trend observed over nearly 15 years shows that none have been keen to change priorities.

 

At many forums, state government leaders complain they are unable to meet the rising demand for education and health services within their limited budgets. However, the reality is far more nuanced.

 

Data from a smorgasbord of seven large states in northern and southern India shows a flat trend