Public Expenditure Ratio (as % of GSDP) from 2007-08 to 2012-13

November 21, 2014

Author: OGD PMU Team

Public expenditure means the expenditure made by the Government for the betterment of the public. Public expenditure can promote growth by financing essential public services, such as security, infrastructure and education. Public Expenditure Ratio is Total Expenditure divided by GSDP of State/UT.

Public expenditure as percentage of GSDP of all the states along with Delhi & Puducherry has increased from 16.74% in 2007-08 to 21.98% in 2012-13 (Pre-Actual). There were ups and downs in Public expenditure as percentage of GSDP in this period. Public expenditure as percentage of GSDP of all the states along with Delhi & Puducherry was at the highest level i.e. 21.98% in 2012-13 (Pre-Actual) during the said period. While the lowest level i.e. 16.45% Public expenditure as percentage of GSDP of all the states was in 2010-11.

The 10 States/UTs with highest level of Public expenditure as percentage of GSDP in 2012-13 (Pre-Actual) are: Mizoram with 63.91%; Manipur with 56.93%; Nagaland with 54.32%; Arunachal Pradesh with 49.61%; Jammu and Kashmir with 40.27%; Sikkim with 33.69%; Meghalaya with 32.84%; Tripura with 28.15%; Goa with 25.71% and Himachal Pradesh with 25.23%.

Sikkim has shown highest decline in the Public expenditure as percentage of GSDP during the period i.e. from 62.34% in 2007-08 to 33.69% in 2012-13 (Pre-Actual).

Note: Source: Fiscal Indicators of the States submitted along with Book of Estimates for Annual Plan 2014-15 & RBI- A Study of Budgets. GSDP – CSO as on 01.03.2014. Data processed and generated by the financial resources division, Planning commission.