ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Social Expenditure and Human Development in Gujarat

The relative position of Gujarat on economic and human development indicators for 10 years from 2004–05 is examined. The state government’s priorities for human development in terms of budgetary allocation to the social sector in general, and education and health sectors in particular over a 10-year period are compared using expenditure ratios and per capita social sector expenditure.

Gujarat is one of the most economically advanced states of India contributing around 7.3% to India’s gross domestic product (GDP)(2015–16), with 4.9% share in the population. The average annual growth rate of gross state domestic product (GSDP) of Gujarat was estimated to be 14.18% during 2004–05 to 2013–14. The state ranked among the top five economically advanced states. However, the social development indicators for Gujarat have not kept pace with the development in the economic indicators (Kalaiyarasan 2014). The progress of Gujarat, particularly in health and education, was disappointing despite its high economic growth (Hirway 2013).

The twin goals of high economic growth and better social development seem to be at odds in Gujarat. In the Indian federal structure, states play a critical role for social development. The states incur more than 80% of the combined government expenditures in these areas (RBI 2013).

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Updated On : 5th Apr, 2019

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