Government should pay attention to expenses, become not only people-centric but also GDP-centric IG News

Be it the Central Government of India or the State Governments, they are not counted among the most expensive governments in the world. Governments in many regions, such as most rich countries, Latin American countries, and countries in Central and Eastern Europe, Central and West Asia, have been spending more in relation to their country’s gross domestic product (GDP).

But Indian governments are not free-spenders. According to the Global Economic Situation Report of the International Monetary Fund (IMF), Indian governments have been spending an amount equal to 28 percent of the GDP at the all-India level. This is higher than the proportion spent by many countries in South-East Asia and Sub-Saharan Africa. India spends much more in terms of GDP than its neighbors like Sri Lanka and Bangladesh.

But what has been achieved from this expenditure?

For example, Bangladesh’s government expenditure is only half that of India (equivalent to 14.5 per cent of GDP), but the average maximum age of people and the length of schooling there are better than those of India. It has also made the per capita income figure almost equal to this figure of India.

Governments of South-Asian countries such as Malaysia, Thailand, and Vietnam are also making significant improvements in the health and education sectors despite spending low as a proportion of their GDP. These and many other countries also have low fiscal deficits and low government debt – India’s is 83.2 percent, Bangladesh’s is half that and Vietnam’s is even less.

It cannot also be said that India has improved its infrastructure by spending more. How can this be explained?

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