Q. 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?

Model Answer:

Public expenditure on social services

Public expenditure on social services in India post-1991 reforms has shown a gradual increase, though often inadequate compared to needs. The pattern varies across sectors:

• Education: Steady rise, focusing on universalization of primary education (Sarva Shiksha Abhiyan) and later expanding to secondary and higher education.

• Health: Slower growth initially, but accelerated after 2005 with the National Rural Health Mission.

• Social protection: Expansion of schemes like MGNREGA, albeit with implementation challenges.

This expenditure pattern aligns with inclusive growth objectives in several ways:

• Increased focus on rural areas and marginalized groups
• Emphasis on human capital development through education and health initiatives
• Introduction of rights-based approaches (Right to Education, Food Security Act)

However, shortcomings persist:

• Regional disparities in expenditure and outcomes
• Inadequate attention to quality alongside quantitative expansion
• Challenges in last-mile delivery and leakages

The consonance between social sector expenditure and inclusive growth has been partial. While access to basic services has improved, addressing structural inequalities and creating sustainable livelihoods remains challenging. Significant gaps persist in tackling urban poverty and emerging issues like skill development, highlighting the need for more targeted and efficient social spending.

Conclusion: Social sector expenditure has increased post-reforms, but its effectiveness in achieving inclusive growth remains partial, necessitating continued focus and improved implementation.