According to RBI’s study, ‘State Finances: Study of Budgets of 2010-11 the development expenditure (DE) in terms of the GSDP (gross state domestic product) was highest in Bihar
”DE-GSDP was the highest in Bihar, followed by Goa while it was the lowest in Kerala and Punjab,” the study noted.
Except for West Bengal and Punjab, the remaining 14 non-special category states, or the non-poor states, have a higher DE-GSDP ratio than Kerala’s, pegged at 8.8 percent in the 201011 fiscal.
There are 12 states with a DE-GSDP ratio of above 10 percent, seven states with a DE-GSDP ratio above 15 percent and one state, Bihar, with a DE-GSDP ratio of above 20 percent.
A bigger blot on the LDF’s performance would be its social sector expenditure. Kerala is one of the only three states to have witnessed the social sector expenditure as a ratio to the GSDP (SSE-GSDP ratio) falling in 2009-10.
In the 2010-11 Budget estimates, too, Kerala has a comparatively low SSE-GSDP ratio.
Except Haryana, all the other 15 non-special category states have a better SSE-GSDP ratio, or spend more on the welfare of the poor, than Kerala in 201011.
There are five states with SSE-GSDP ratio of over 10 per cent.
The biggest welfare spenders are Bihar (13.7 pc) and Chhattisgarh (12.7 percent). Both the CPM-ruled states, West Bengal and Kerala, have SSE-GSDP ratio below 7 percent. Kerala’s is a mere six percent. West Bengal’s is marginally better at 6.7 per cent.
Bihar tops the nation in development expenditure in terms of GSDP
May 13, 2011 •