An Analysis of Sectoral Allocation of Budgets in India

Abstract

The paper analyzes sectoral allocation of budgets across different sectors from 2009 to 2024. Historical trends and current patterns were analyzed to gain insight into government priorities, resource allocations, and their socio-economic implications. Through this evaluation of sectoral allocations, policymakers, stakeholders, and researchers can identify areas of underinvestment and enhance fiscal transparency and accountability. This comprehensive examination will serve as a foundation for evidence-based policy formulation. It will ensure efficient resource allocation and equitable distribution to address societal needs effectively. The analysis reveals a shift in priorities over the years. In the early years (2009-2013), the focus was on social sectors like health, education, and rural development, along with infrastructure growth. Defense spending remained moderate. During the mid-years (2013-2018), social sector spending dipped slightly, while infrastructure allocation rose. Defense spending also began to increase. The most recent years (2018-2024) have seen a significant rise in infrastructure spending. However, the social sector's share of the budget has stagnated or even declined. Defense spending has continued its upward trend. The paper acknowledges that external factors like global financial crises and pandemics can influence budget allocations. It also raises concerns about potential underinvestment in social programs and the agricultural sector, which haven't seen a significant rise in budgetary allocation despite its importance in the Indian economy.