States have increased their social sector expenditure as a percentage of gross state domestic product (GSDP) after the 14th finance…
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States have increased their social sector expenditure as a percentage of gross state domestic product (GSDP) after the 14th finance commission award, according to a NITI Aayog paper.
In 2015-16, the Centre accepted the 14th Finance Commission's (FFCs) recommendation and the share of states in central taxes was increased by 10 percentage points to 42 per cent from a level of 32 per cent.
The paper said there were doubts that the states might curtail their social sector expenditure in response to increased untied transfers from the Centre.
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"Contrary to this, there has been an increase in social sector expenditure as a percentage of gross state domestic product (GSDP) for all the states, except Manipur, Andhra Pradesh and Tamil Nadu in 2015-16," it said.
The paper, authored by NITI Aayog adviser Alok Kumar and other senior officials also said social sector expenditure in financial year 2015-16 has increased in absolute terms across all the states with respect to previous financial year.
"The percentage increase varies from 4 per cent in Tamil Nadu to 62 per cent in Assam (ignoring J&K and Telangana)," it said.
For north eastern & Himalayan states (NE&HS), the average expenditure on health and education as percentage of GSDP has increased by about 0.40 percentage point to 1 percentage point.
"Maximum increase is witnessed in Mizoram for health and in J&K for education," the paper pointed out.
According to paper, at an aggregate level, 21.19 per cent more resources were available to the states during financial year 2015-16 by the way of central transfers as compared to 2014-15 fiscal.
"Barring Sikkim, Tripura and Uttarakhand, all other states are better off in terms of financial allocations in respect to FY 2014-15," it said.
Social sector includes expenditure on general education, technical education, sports and youth Services, public health, family welfare, water supply and sanitation, housing, urban development etc.
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