Social Allocation Ratio measures the importance the government give to the social sector in general. Social allocation ratio is calculated by dividing the social sector expenditure by total expenditure.
India has witnessed a fluctuating trend in Social Allocation Ratio during 2007-08 to 2012-13. As per Pre actual figures of year 2012-13, fifteen State/UT having social allocation ratio less than the National average (45.57%) are Arunachal Pradesh (39.01 %), Himachal Pradesh (39.52 %), Jammu and Kashmir (29.8 %), Manipur (36.36 %), Mizoram (44.49 %), Nagaland (28.3 %), Goa(34.93 %), Gujarat (42.59 %), Haryana (44.11 %), Kerala (36.79 %), Madhya Pradesh (44.82 %), Punjab (40.58 %), Tamil Nadu (42.4 %), Uttar Pradesh (42.14 %) and Puducherry (44.69 %). During the said period, Maximum State allocation ratio seen is 60.38% in Jharkhand state for Year 2008-09 and minimum ratio is seen in Punjab State for year 2007-08 i.e 19.74%.
Chhattisgarh state has more than 50 percent Social Allocation Ratio from 2008-09 onwards. Similarly, Jharkhand state is also showing the same trend except 2011-12. It has also been observed that Punjab (except 2012-13) and Nagaland State has comparatively low Social allocation ratio i.e less than 30% when compared to all the states at all India level. Delhi, Sikkim and Rajasthan has more than 40% of Social Allocation Ratio during the years.
Note: Source: (i) Social Sector Expenditure – Statement 46 of State Finances (RBI) & (ii) Total Expenditure – Fiscal Indicators of the States/Uts. Data processed and generated by the financial resources division, Planning commission.