Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth? (150 words)
The post-reform period in India (post-1991) saw a shift towards liberalization, with increased public expenditure on social services like health, education, and infrastructure to promote inclusive growth.
Pattern and Trend of Public Expenditure on Social Services:
- Increasing Allocation: Public expenditure on social services increased from 5.49% of GDP in 1990-91 to 8.3% in 2021-22.
- Focus on Education: Spending on education rose from 2.9% of GDP in 1991 to around 3.1% in 2022, though still below the NEP target of 6%.
- Health Sector Investment: Health expenditure increased from 1.5% of GDP in 1991 to 2.1% in 2022-23, especially after COVID-19.
- Rural Development: There was a shift towards rural development, with schemes like MGNREGA, PMAY, and PMGSY to enhance rural infrastructure and employment.
- Social Welfare Schemes: Emphasis on welfare schemes like Pradhan Mantri Garib Kalyan Yojana, PM-KISAN, and Ayushman Bharat reflects efforts to enhance the social safety net.
Extent of Consonance with Inclusive Growth:
- Reduction in Poverty: A significant reduction in poverty rates from 45% in 1993 to around 10% in 2020 due to increased spending.
- Improved Health Indicators: Life expectancy increased from 58 years in 1991 to 70 years in 2022 due to better health services.
- Education Accessibility: Gross enrolment ratio in higher education rose from 6% in 1991 to 27.1% in 2020-21.
- Inequality Persisting: Despite efforts, wealth inequality remains high, with the top 10% holding 77% of national wealth.
- Regional Disparities: States like Kerala and Tamil Nadu show better health and education outcomes, whereas others like Bihar lag behind, indicating uneven growth.
Conclusion: While public expenditure on social services post-reforms has advanced inclusive growth, targeted investments and balanced regional development are crucial for achieving comprehensive inclusivity.
