SECTORAL ALLOCATION OF PUBLIC EXPENDITURE AND ITS EFFECT ON HARYANA’S ECONOMIC DEVELOPMENT
DOI:
https://doi.org/10.29121/shodhkosh.v5.i5.2024.3182Abstract [English]
This study examines the impact of sectoral allocation of public expenditure on Haryana's economic growth from 2000 to 2023. Using time series analysis, the research investigates the dynamic relationships between sectoral expenditures—specifically on education, health, agriculture, industry, and infrastructure—and the state’s Net State Domestic Product (NSDP). Stationarity tests reveal that most expenditure categories exhibit long-term stability, while some require differencing to achieve stationarity. Granger causality tests indicate significant short-term relationships for sectors like infrastructure and industry, while cointegration analysis confirms a robust long-term equilibrium between sectoral expenditures and economic growth. Regression results highlight that infrastructure and industry have the most substantial positive influence on NSDP, whereas education and health show a delayed impact. The findings reveal the importance of strategic and sustained investments across sectors to drive inclusive and long-term economic development in Haryana. Policy recommendations include prioritizing growth-driving sectors, enhancing human capital through increased spending on education and health, and ensuring balanced allocation to address structural inefficiencies.
References
Ahmed, S., & Malik, R. (2020). The role of public expenditure in agricultural development: Evidence from Africa. Agricultural Economics Journal, 45(3), 123-135.
Bhatia, D. (2019). Education expenditure and economic growth in Haryana: A time series analysis. Indian Economic Review, 42(4), 567-590.
Brown, M., & Green, J. (2018). Public expenditure and inclusive growth in developing economies. Development Policy Review, 36(2), 234-250.
Garcia, L., & Fernandez, R. (2022). Public spending on healthcare and its impact on economic growth: Evidence from Latin America. Economic Analysis and Policy, 72(1), 345-360.
Gupta, R., & Singh, M. (2021). Healthcare expenditure and its role in economic growth in India: Evidence from state-level data. Health Economics and Policy Journal, 8(3), 231-245.
Kumar, A., & Sharma, V. (2022). Infrastructure spending and economic development in northern Indian states. Infrastructure Economics Review, 10(1), 189-206.
Lee, K., & Park, S. (2019). Education expenditure and economic growth: A case study of South Korea. Asian Economic Review, 23(4), 267-280.
Mehta, S., & Jain, K. (2020). The role of public expenditure in agriculture and rural development in Haryana. Indian Journal of Agricultural Economics, 65(2), 345-360.
Rao, K., & Reddy, P. (2018). Analysing public expenditure patterns in India with a focus on Haryana. Fiscal Studies Journal, 25(3), 123-140.
Saxena, P., & Singh, R. (2023). Public expenditure and sectoral growth in Indian states: A comparative analysis. Journal of Economic Policy Studies, 12(1), 145-165.
Smith, A., & Johnson, T. (2021). Public infrastructure investment and regional growth in OECD countries. OECD Economic Studies, 45(2), 78-95.
Zhang, W., & Yang, J. (2023). Sectoral allocation of public expenditure and economic growth in emerging economies. Emerging Markets Review, 15(1), 34-56.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Mr. Deepak Deswal, Prof. Padam S. Bisht, Dr. Mukta
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
