Public Expenditure in India

Government is a major player in the development of an economy. Government’s public financial operations involving raising of revenue and its spending have considerable implications on the growth, distribution, and stability, necessitating a careful study to enable informed mid-course policy corrections to the macroeconomic developments. A critical review of public expenditure is imperative in ensuring optimal use of public resources for the maximization of welfare. The present book provides an empirical understanding of historical trends and composition of public expenditure at the central and the sub-national levels; the effectiveness of public expenditure control systems and accountability issues; the political economy of spending decisions; public expenditure reforms undertaken in India; and international best options that can guide the corrective process in India. Given the global shift in focus from ‘outlays’ to ‘outcomes’, it is important to put in place a sound framework to track the results of government expenditure programs to guide the informed expenditure decision-making process. The book documents the features of useful frameworks and steps involved in adopting a robust results framework. Fiscal management of Covid-19 is an important component of the book. The purpose of this volume is to reach out a comprehensive and updated understanding of empirical issues in public expenditure and its management in India to the students of public finance.