2024 · GS Paper 3 · Q1 · 10 marks

Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth?

In short

Social services spending stagnated in the 1990s, expanded through rights-based entitlements in the 2000s and rose to 7.8% of GDP in 2023-24 (BE), but it has served inclusive growth only partly. Multidimensional poverty fell from 55.3% in 2005-06 to 14.96% in 2019-21.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Centre and state spending on social services rose from 6.7% of GDP in 2017-18 to 7.8% in 2023-24 (BE), as per the Economic Survey 2023-24, ending a long post-1991 arc of ups and downs.
Pattern and Trend of Social Spending Since 1991
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Compression then entitlements

Spending stayed flat in the 1990s under fiscal stabilisation, then rights-based laws such as MGNREGA, the RTE Act 2009 and the NFSA 2013 expanded it.

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States and assets

After 42% devolution in 2015, states gained untied funds while the Centre funded toilets, houses, tap water and LPG and widened DBT.

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Composition

Health spending grew at a CAGR of 15.8% between FY18 and FY24 against 9.4% for education.

Extent of Consonance with Inclusive Growth
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Deprivation down

NITI Aayog's MPI fell from 55.3% in 2005-06 to 14.96% in 2019-21, and out-of-pocket health spending fell from 62.6% of the total in 2014-15 to 39.4% in 2021-22 (National Health Accounts).

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Benchmarks missed

Health and education spending remain below the 2.5% and 6% of GDP goals of the National Health Policy 2017 and NEP 2020, and ASER shows weak foundational reading.

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Uneven reach

Per-head spending is lowest in high-poverty states such as Bihar, and MGNREGA wage delays persist.

Conclusion
Social spending has been only partly in consonance with inclusive growth: it widened access and cut deprivation, but its level and quality are too low to equalise capabilities. Outcome-linked, need-based spending would make growth truly shared, in line with SDG 10 and Viksit Bharat 2047.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Social Spending Since 1991. Social Spending Since 1991. Diagram (timeline): Social Spending Since 1991; 1991; Stabilisation squeeze; 2001; Sarva Shiksha Abhiyan; 2005; NRHM and MGNREGA; 2013; Food Security Act; 2015; 42% devolution; 2020
Diagram: Social Spending Since 1991

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Question from the official UPSC Civil Services (Main) Examination 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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