KARNATAKA - of Planning Commission

Financing Human DevelopmentFIGURE 3.1.4Trends in human development expenditurePublic Expenditure RatioSocial Allocation Ratio2242204018381636143412321030Percentage1990-911991-921992-931993-941994-951995-961996-971997-98Social Priority Ratio1998-991999-20002000-012001-022002-031990-911991-921992-931993-941994-951995-961996-971997-981998-99Human Expenditure Ratio1999-20002000-012001-022002-03604.24.0553.83.6503.43.2453.01990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-022002-03Years1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-022002-0334 per cent in 2002-03, which is well below thesuggested norm of 40 per cent. Similarly, in thecalculation of SPR, due to the inclusion of moreheads of expenditure than those used by UNDP,the ratio is somewhat infl ated. Even with this,SPR was just around the norm of 50 per cent in2002-03. Finally, the HER was not only lowerthan the suggested norm of 5 per cent in all theyears, but has been steadily diverging from thenorm with the decline in ratios.A comparison of the PER, SAR and SPR fordifferent states shows that while the relativeranking of Karnataka in terms of PER hasimproved in the 1990s, there has been a fall inits rank in terms of SAR (Table 3.1.5). In termsof SPR and HER however, although the ratios arelower in 2001-02 than in 1990-91, the relativeranking of Karnataka has not changed much overthe decade.Interestingly, the ranking of Bihar and Orissa interms of PER and HER is very high relative totheir human development indicators, which arelow. Calculations of PER and HER by Prabhu(1999) showed that in the period 1991-94, Biharand Orissa ranked fi rst and third respectively inboth PER and HER among the 15 major states ofIndia. The reason for the low HDI ranking of thesestates despite a high PER (as well as HER) is dueto their low per capita GSDP levels. In terms ofper capita public expenditure, their ranking is low.As shown in Table 3.1.7, in terms of the per capitapublic expenditure, social sector expenditureand human priority expenditure in differentstates, Bihar ranked 14th (last) and Orissa 11thamong the 14 major states of India in 2001-02.Ultimately, it is human development spending percapita in absolute terms that is more importantthan the human expenditure ratio. Karnatakahas a higher per capita public expenditure/GSDP42