Being people-centric: Indian govts no slouches when it comes to spending

Percentages can mislead: A higher percentage of a lower GDP per head can translate into less absolute spending per head than a lower percentage of a much greater GDP per capita, notes T N Ninan

India’s governments at the Centre and in the states are not the world’s biggest spenders. In many regions, governments have been spending more in relation to their country’s gross domestic product (GDP): The advanced economies most of all, but also Latin America, the economies of Central and East Europe, and those in Central and West Asia. But governments in India are not slouches when it comes to spending. According to the numbers in the International Monetary Fund’s World Economic Outlook, Indian governments spend about 28 per cent of GDP at the all-India level. That is more than in many of