THE government may have enhanced allocation for its social sector in the current budget but the net expenditure as percentage of the gross domestic product (GDP) is still too low in comparison to some of the developed economies.

The total combined expenditures of central and state governments on social services in 2008-09 was 6.72 per cent of GDP at current prices. This is too low when compared to what some of the western countries spend on their people.

Germany leads others by spending a significant 25 per cent of its GDP on social services that include education, sports, art and culture, medical and public health, family welfare, social security and nutrition. France is a close second with an expenditure of 23 per cent of gross domestic product while UK and US come third and fourth with 13 per cent and 12 per cent respectively, according to data from the IMF……

For instance, expenditure on education as a proportion of total expenditure has increased from 9.5 per cent in 2003-04 to 10.8 per cent in 2008-09. Share of health in the total expenditure has also increased from 4 per cent in 2003-04 to 5 per cent in 2008-09.

However, despite improvement in central allocation, there are still leakages in the system which are preventing the benefits from reaching the intended target group.

— The Times of India, August 02