Economic Survey 2013: spending on social sectors increased, but expenditure on rural development dipped

Expenditure on healthcare was stagnant

By Jitendra
Published: Wednesday 27 February 2013

The Central government's overall spending on providing social services has increased over the past six years but its spending on rural development has decreased, according to the Economic Survey report released by the government on Budget eve. Expenditure on the health sector was also stagnant. 

This social sector expenditure increased because of increased expenditure on the north-eastern region, social welfare and nutrition, welfare of SC/STs and other backward classes and village road development under Pradhan Mantri Gramin Sadak Yojana (PMGSY).

The overall expenditure (Plan and Non-Plan) on social services sector increased from 14.77 per cent in 2007-08 to 17.39 per cent in 2012-13 (as per Budget estimate). It was at an all time high of 18 per cent in 2010-11 and has been declining since then (see table). But the expenditure on rural development sector, which is a component of social sectors, has decreased to 2.74 per cent in 2012-13 from 2.80 per cent in 2007-08. It was at an all time high of 4.56 per cent in 2008-09 and has been declining since then.

The spending on health and family welfare, meanwhile, has been stagnant. The expenditure on it was 2.05 per cent in 2007-08 and increased very marginally to 2.06 in 2012-13. It was at an all time high of 2.09 per cent in 2008-09. Since then it has been decreasing.

Government expenditure on welfare
(as per cent of total government spending)
Item 2007-08 2008-09 2009-10 2010-11 2011-12(RE) 2012-13(BE)
Social sector 14.77 17.95 16.82 18.00 16.79 17.39
Rural development 2.80 4.56 3.77 3.51 2.97 2.74
Health& family welfare 2.05 2.09 2.00 1.98 1.90 2.06

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