ABSTRACT

Sustainability in the social sector is one of the major goal of the sustainable development goals
laid down by the United Nations. It helps in achieving sustainability in the development of the
human resources which enables the people to enjoy the welfare schemes introduced by the
government. The schemes taken in this sector are mainly related to poverty alleviation, giving
health benefits, providing education etc. The objective of the study is to basically, analyse that
how the investment made in social sector enhances the human resources of an economy. And in
a developing economy like India how the social sector helps in forming a good base of human
capital. So, this study observes that how with more and more investment the human resources are
affected. In India the investment in social sector has been increasing so that the population is
able to reap the benefits out of it. This study also gives the measures to enhance the human
resources more and enhance the efficiency of the social sector investment.

Keywords: Social Sector, Education sector, Health sector, Sustainable Development.

 INTRODUCTION

For development and reducing poverty throughout the economy, investment in social sector is
recognized by the government. Investment in social sector means investing in the people of a
country which enables them to raise their standard of living and getting to know what they are
actually required to do. this provides sustainability in the development process of a country and
now this is also recognized at the international level by United Nations and they have laid down
some of the goals which helps in the sustainability growth. Every country is required to fulfill
them if they want to achieve sustainability in their growth and health and education has also been
given the titles for two major goals. This shows that investing in the human resources of the
country is so much important in order to obtain the sustainability in the development process.

The world development report which was published in 2003 also stated that for achieving the
sustainable development, it is important to provide education and health facilities to the
underdeveloped or socially backward class too which will certainly help the backward sector to
develop. This is important because in such a dynamic world it is required that the population of
the nation knows what is good for them and what is not. By investing in the social sector, the life
expectancy of the people tends to increase which means that the people are able to live more than
what they could have. This raised life expectancy helps a country as now their human assets will
be serving for a more longer term.

The important characteristic of the investment in social sector is that it is done mainly by the
state governments. the main sector that enjoys the major part of the investment is the education
sector. While in the division it is said that the expenditure should be made equally by the state
and the central government but instead of this state government plays an active role and do the
major part of the expenditure.

The social sector is defined as a sector in which investment is made for non-profit motive and the
main objective is the social welfare of people i.e. for benefitting the people of the society. Here
in the study the focus is only on the health and education as these are the major part of the social
sector and benefits the economy to a great extent. They help in increasing the productivity of
labour and with prevailing demographic capital it is seen that major part of the population will
constitute of the young ones which will help the economy to grow at a faster rate. This will
increase the share in the national income and will certainly help in ensuring inclusive growth.
India is enjoying a demographic dividend as it is seen that the population aging from 15 to 59 has
increased from 58%in 2001 to around 62% in 2016 and it is predicted that it will reach to 64% in
2021. And from this working population the major part constitutes of people aging from 20 to
35. The benefit of this can only reaped if the government is willing to invest on the social sector
of the economy. The resources till now are not exploited at a rate which can be done if efficient
and effective investment is made in the social sector with some checks by the government.

The social sector benefits in India are reaped by the poor population as they are still not capable
of making their own investment in their health and education field. So, this shows that the
government is not able to include the whole economy in the expenditure yet.

Research Problem:

The study basically involves that how the expenditure in social sector enables the economy in
achieving sustainability in the human development process and it also helps in sustainable
growth of the economy as well. The goals given by the United Nations regarding this also entails
that what factors lead to human resource development through investing in the social sector of
the economy and how the expenditure in needed to be made for ensuring sustainable
development overall in the economy. With the expenditure in the social sector it is seen that
inclusive growth of an economy takes place as with this the population of a country knows the
options that they are having and have the knowledge of choosing the best option available for
them. This helps in increasing the self-esteem, self-sufficiency of the population.

Objectives of the study:

1. To study the trend in expenditure on education and health.

 2. To analyze the effects of expenditure in health sector.
3. To analyze the effects of expenditure in education sector.
4. To give recommendations for making the social sector more efficient.

Significance of the study

In such a dynamic world, it is needed that the government of a country is willing and able to
make investment in their human resources. It is also seen that in India the inequality in income
distribution is there which also acts as a major factor responsible for making the expenditure in
social sector. If the government makes an efficient and effective investment then the poor
sections which are not able to sustain itself will be able to somehow reach some kind of
sustainability by using the policies and schemes of the government. So, the study tries to study
the expenditure in social sector as a factor that helps in improving quality of human resources.

In the next chapters study will talk about the schemes, policies and further expand the concept of
social sector and its expenditures and discuss the methodology used to prove the hypothesis.
Finally, the data analysis will be shown and conclusions and recommendations will be made
according to it.
 Background of the study
From 1990s the approach of the people regarding their rights changed significantly and have
become more attentive towards their education and health concerns. People have kept themselves
changing with the changing world and have adjusted with the dynamic world. From 2001
onwards, the real struggle has been seen as during this period the exploitation of the workers
increased due to the LPG policy and they have struggled hard to save their dignity.

After the independence, indian government is working to solve the issues of health and education
that was prevailing in the economy. Even after 70 years of the independence, the indian
government is still facing these issues. In order to solve these issues, the government had
initiated some education and health policies and they are:

Shiksha Sahayog Yozana: This scheme basically provides scholarships to the students and these
are provided to the students whose family income is below the poverty line. It helps them to
complete their education even when they do not have enough financial resources.

Sarva Shiksha Yozana: this scheme was initiated by the government in 2001 and it was made
with the purpose of providing elementary education to all the people and it was introduced in all
the districts of the country.

Saakshar bharat: the aim of this scheme was to give adult education after the primary education
and it was specially made to give education to the women and to get the benefits the people were
required to contact lok shiksha of any region.

The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): it was initiated to restore the
imbalances in giving the healthcare facilities to all the people of the country majorly in the less
developed regions. It came into effect from 2006.

National AYUSH Mission (NAM): this scheme came into effect after the formation of the
planning commission. It was formed with the aim of providing efficient and less costly treatment
to the people and for also enhancing the education sector of the country.

Janani Suraksha Yozana: this scheme was initiated to reduce the maternal and infant death rate in
the country. It's aim was to provide medical facilities to the pregnant women of the country and
for enhancing the life expectancy of the new born babies.
Mercy W.J. (2007) in his journal studied the inter comparison between states regarding the
trends in social sector expenditure and revenues coming from it. He used regression models to
show the inter temporal variation between the expenditure in education or health and the net state
domestic product. He concluded that a major share of social expenditure goes to education and
there are disparities in social sector expenditure among various states.

Pravesh Tamang (2011) in his journal studied the relationship between expenditure in education
and economic growth in Indian economy. He used an econometric model- error correction model
to draw the relationship. And he concluded that education expenditure per labour have a lesser
impact on economic growth as compared to physical capital per labour.

Rama Pal (2010) in his journal studied the analysis of OOP catastrophic expenditure on health
and how policies are formed according to it. He has used Engel Curve model as an econometric
model to establish relationship between per capita expenditure and minimum food requirements.
He concluded that even after trying to reduce the differences between various race, socially
deprived classes are still vulnerable as they are more likely to experience financial catastrophe
due to illness.

T. Maheshwari (2012) in his journal studied the analysis of performance in the social sector like
education, health, poverty in India etc. He established this by using various ratios like Percentage
of People below poverty line in India, Pupil-teacher ratio in schools in India, Gross Enrolment as
percentage to the total population by age and sex, Infant Mortality Rate in India. And he
concluded that in order to achieve real development not only in terms of targets, inclusive growth
strategy should be adopted and sustainable development should be there in this sector.

Pranjal Mittal (2016) in his journal studied the effect of social sector development on human
development index of Indian states. The analysis of the study is basically based on simple
correlation and regression in terms of social sector expenditure as a percentage of GDP. He
concluded that there is a positive relation between social sector expenditure and human
development at state level but in some states the allocation of funds is not done properly due to
which it sometimes leads to negative relation. This is more due to the fact that there are different
levels of poverty among different states so the expenditure should be made according to it.

Table 1: literacy rates

Source: Indiastat.com

The above table shows that after the reforms India has been able to improve its literacy rate.
From 1991 to 2011 the literacy has improved from 56 to 74.04. This shows that now more
people are literate in the country but however, this data does not show that the secondary
education is low in India due to high drop rates.

Table: Multi-dimensional poverty index

 Source: Human Development Report, 2010

The above table represents that about 50% of the population of the india lives under multi-
dimensional poverty and they are not able to get education and health facilities which in turn
resulted in reduced standards of living. The data of population under poverty line shows there is
a difference between india's standards and the standards laid down by the UNDP.

From this it is somehow reflected that the social sector is deprived sector of the Indian society
but it also cannot be neglected that it has still shown growth in different periods. The human
resource now is more goad than it was in pre-reform period and after 11th plan also the social
sector has shown improvement.
 METHODOLOGY

The type of data used in this study is mainly secondary data. Secondary data is the data which is
collected from the indirect sources like ministry sites, world bank and UNDP sites, various
journals etc. The main focus of the study is to show that how the expenditure on health and
education sector affects the human resources of a country. The sustainable expenditure on human
resources helps in achieving sustainable human development and due which the inclusive growth
of an economy could take place. Thus, the data has been collected from the world bank and
UNDP site, ministry sites of India and various publications.

Research Design

The study done here is an observational study. In this type of study dependent and independent
variables are taken into consideration. The dependent and independent variables are out of
control of the researchers and any interaction between them are only responsible on the type of
necessities that are required by them to influence them. The connection between the dependent
and independent variable decides whether the economy is doing good or not.

Data Collection

The data is collected from the Ministry annual reports of education and health. The data for
expenditures on health and expenditure on education are separately taken from their ministry
sites respectively. The data like total enrollment in primary education and number of infant
deaths are taken from UNDP and world bank sites. For some missing data between the years
various annual reports were taken into the consideration and the major part and independent
variables were taken from world bank site and dependent variables from India’s annual reports.
The data is collected for the period from 2002 to 2014. It helps in reflecting the benefits of
investing in the human resource development of India.

Data Analysis

The statistical model used for proving the required elements is regression model. Regression
model is basically used to analyze the dependence of one variable over the other variable and
analyzing that how a variable behaves when taken in account of another variable. In this study,
two different regressions are used for showing the analysis for education and health respectively.
For education, dependent variable taken is total enrollment of students in primary education and
independent variable taken is expenditure on education. For health, dependent variable taken is
total number of infant deaths and independent variable is expenditure on health and the period
covered in this study is from 2002-2014. The level of significance is taken at 5%.
 Data Analysis
The previous chapters showed the concept and performance of social sector and the kind of
human resources which were there in the country and now we will observe that what changes
took place after the expenditures were made and will analyses the data. The government has
taken huge expenditures on education and health sector separately. During the period, various
policies and programmes are introduced by the government to enhance the human resources of
the country. The government has paid attention to human resource development as it is the only
way of ensuring sustainable and inclusive growth of the country. In the previous chapters some
policies and programmes taken up by the government is listed and the objective behind the
introduction of those schemes was also the aspect which was talked about. The government is
playing a crucial and active role changing the thinking of people and making them attentive
about the knowledge about their future. The major role in the expenditure made on the education
and health is played by the state government as the major part of the expenditure are done by
them.

Here, in the study parameters taken are enrollment in primary education, total number of infant
deaths. Primary education means giving education to person aging from 6 to 15. In this the
primary education means giving education to person between 1st to 8th class. It provides the base
for the education and in India having education till primary was initially the main objective of
the government as after independence it was seen that people were not even having this
education also. After this the government also stressed upon the secondary education for the
people. And the second parameter relates to death of infants. Infants basically means a new born
child. In India it was observed that many new born babies died at the time of the delivery or
within several days. This was happening due to less awareness among the people and less facility
available for medical check ups of the mothers. And apart from these, many a times the hospitals
were not able to meet the immediate requirements for the deliveries due to which also the deaths
of infants happened. So, in order to correct these types of problems government made
expenditures in the education and health sector.
 Table 3: Government Expenditure on Health

EXPENDITURE ON HEALTH(IN
CRORES)
30000 27565.29

24261.06
25000

18641.47 19447.67
20000
15888.84
15000 13750.5

10726.78
10000 8325.66
6684.49
4311.37
5000 3761.12
2921.81

0
2002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-14

Source: Ministry Annual Reports

The above graph represents the government expenditure on health from 2002 to 2014. From this
graph it is clearly reflected that how the government expenditure has changed over the years and
the patterns are clearly shown through this. Each expenditure incurred on health is responsible
for enhancing the life of the population of India. This expenditure is somehow responsible for
reducing the infant death rates in india and with it many of the health issues are solved by it. In
2002, the health expenditure by the government was 2921.81 Crores and with time it kept on
increasing. The rising population of India was also responsible for such an increasing rate of
health expenditure and finally in 2014, the expenditure on health by the government reached
27565.29 crores. Various health schemes that were taken up during this period were Janani
Suraskha Yozana, Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) , National Programme
on Prevention and Control of Viral Hepatitis, National Ayush Mission (NAM), Janani Shishu
Suraksha Karyakaram etc. These schemes were introduced in order to reduce maternal and infant
deaths and to prevent some of the prevailing diseases. Major part of the schemes was made for
the households who were living below poverty or just slightly above the poverty line. It was also
said by the government that in the 21st century around 59% of the deliveries were unsafe and it
was seen that only 31% of the institutional delivery centres were in rural areas where around
65% of India’s population lives. This is why government paid attention towards the maternal and
infant deaths that were happening.

Table 4: Government Expenditure on Education

Expenditure on Education

2013-14 2841654.22
2012-13 2619814.66
2011-12 2249526.46
2010-11 1997801.29
2009-2010 1734074.75
2008-09 1495733.62
2007-08 1191514.68
2006-07 1033872.6
2005-06 889713.96
2004-05 797345.74
2003-04 743668.96
2002-03 657854.256

0 500000 1000000 1500000 2000000 2500000 3000000

Source: Ministry Annual Reports

The above graph represents the government expenditure on education from 2002 to 2014.
From this graph it is clearly reflected that how the government expenditure has changed over
the years and the patterns are clearly shown through this. Each expenditure incurred on
education is responsible for enhancing the quality of human resources of India as through this
they were made knowledgeable that how they need to choose between the alternatives and
how they can maximize their utility. This expenditure is somehow responsible for increasing
the enrollment of people in the primary education in India and with it many of the education
issues are solved by it. In 2002, the education expenditure by the government was 657854.25
Crores and with time it kept on increasing. The rising population of India was also
responsible for such an increasing rate of education expenditure and finally in 2014, the
expenditure on health by the government reached 2841654.22 crores. The government
introduced various schemes to impart better education to all the people. Initially after the
independence it was noticed that major part of the population was illiterate and illiteracy was
somehow responsible for backward thinking of the people and due to which the people were
 not willing to move from rural areas to urban areas. Various schemese taken up by the
government were Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan (RMSA),
Inclusive Education for Disable at Secondary Stage( IEDSS ), Saakshar Bharat etc. The
expenditure on education was also made to generate some technical skills by proving adult
education.

Graph: Number of Infant Deaths

Number of Infant Deaths

2013-14 956818
2012-13 1007370
2011-12 1017732
2010-11 1169205
2009-10 1215707
2008-09 1306175
2007-08 1393882
2006-07 1430244
2005-06 1467215
2004-05 1528865
2003-04 1608050
2002-03 1650996
0 500000 1000000 1500000 2000000

Source: World Bank

The above graph represents the number of deaths of infants over the years. Infants are
basically the new born babies. This table shows that how the death rate of infants came down
and shows the pattern of the infant deaths in the period. This was high in 2002 as the delivery
centres were not opened in all the regions and a major part of the population was not available
to afford the right treatment and non-availability of these centres led to the deaths of the
infants. Apart from this the deaths were also caused due to less nutritional diets which was not
taken by the mothers due to poverty. The low-income earners were the people who suffered
this and in India the income inequality is also there which was also the reason for this. But
from the above graph it is visible that the infant deaths have reduced as in 2002 the number of
deaths were 1650996 and in 2014 the number of deaths were 956818. This has been made
possible due to the expenditure made by the government on health sector. For reducing the
 infant deaths specially government introduced schemes like Janani Shishu Suraksha
Karyakaram in which government provided funds and also the medical facilities so that the
number of deaths can be reduced and to enhance the quality of new born babies. This scheme
was introduced in 2011 and in this free check-ups, free deliveries and also free transportation
to the mother at the time of delivery. It was estimated that around 12million mothers will be
made beneficiary of this scheme. This will help in motivating the females and their families
who preferred home delivery to go to the hospitals as now it will almost cost them for free.
And even after the birth of the child, the child will be provided 30 days of free medical check-
ups and free medical drugs.

Graph: Enrolment in Primary Education

Enrolment in Primary Education

2013-14 148466464
2012-13 141154752
2011-12 139869904
2010-11 137746816
2009-2010 138413840
2008-09 138368128
2007-08 139317984
2006-07 137742640
2005-06 134568546
2004-05 130845620
2003-04 127568340
2002-03 125789179
110000000 120000000 130000000 140000000 150000000 160000000

Source: World Bank

The above graph represents the number of enrolment in primary education over the years. This
table shows that how the enrolment number in primary education has increased and shows the
pattern of the enrolment in primary education in the period. This was low in 2002 as the
educational centres were not opened in all the regions and a major part of the population was not
available to afford the education and non-availability of these centres led to illiteracy among the
population. The people were only did not have the preference for education as they thought if
their child will work on farm then he will be able to earn more income but if they will go for
education then they have to leave the current profits but they never thought of future possibilities
that how education will help them. The government launched many schemes to motivate the
people like mid-day meal was introduced which provided the meals for the children as well as
their education for free. The free meals encouraged the people as because of this they thought
that now they do not have to feed their children which will reduce their burden. And now the
government is providing education and skills together and the children are also getting paid for
the work they do. This policy has enabled the children to take education and as well as earn
money. This has motivated their parents to send their child to get the education as the money
problems are solved by this policy and the family also does not gets burdened for providing
education fund for their children.

The expenditures on health and education has enabled the country to make the human resource
sustainable. Sustainability here means that the human resource will not only be made for present
generation but also for the future generations. The expenditure on human has also helped the
economy to get good human resources. Sustainability in the sense that the expenditure will not
only help in present but also in the future as development is not a gradual process, it takes time to
happen in the economy. To show this regression model has been used to see the effects of
expenditure on health and education separately.

H 0 : There is no significant relationship between government expenditure on education and

enrolment in primary education.

H 1 : There is significant relationship between government expenditure on education and

enrolment in primary education.

Table: Government Expenditure on education and Enrolment in Primary Education

Expenditure on Education (in

Year crores) Enrolment in Primary Education
2002-03 657854.256 125789179
2003-04 743668.96 127568340
2004-05 797345.74 130845620
2005-06 889713.96 134568546
2006-07 1033872.6 137742640
 2007-08 1191514.68 139317984
2008-09 1495733.62 138368128
2009-2010 1734074.75 138413840
2010-11 1997801.29 137746816
2011-12 2249526.46 139869904
2012-13 2619814.66 141154752
2013-14 2841654.22 148466464
Source: Ministry Annual Reports and World Bank

Rejection region of null hypothesis: Probability value i.e. p value < 0.05

The above model can be represented as:

logY = a+ b logX + u
i i i

; Where Yi is the enrolment in primary education

X is government expenditure on education sector

i

The results of the regression analysis are represented in the following table:

Regression Analysis:

Standard Lower Upper Lower Upper

Coefficients Error t Stat P-value 95% 95% 95.0% 95.0%
Intercept 7.651713 0.080749 94.75956 4.19E-16 7.471794 7.831633 7.471794 7.831633
Expenditure on
Education 0.078864 0.013163 5.991279 0.000134 0.049535 0.108193 0.049535 0.108193

The regression analysis represents that the value of a is 0.078864 and value of b is 7.6517. Thus,
there is a positive impact of expenditure on education sector on enrolment in primary education
However, the positive impact is not of a great extent, actually the increase is not even satisfying
compared with the expenditure incurred. The probability value is 0.000134which is less than
0.05. Therefore, we reject the null hypothesis that there is no significant relationship between
government expenditure on education and enrolment in primary education. The model is
therefore as follows:

Y = 7.651713 + 0.078864logX + u
i i i

Table: Anova Table

Df SS MS F Significance F
Regression 1 0.003392 0.003392 35.89543 0.000134
Residual 10 0.000945 9.45E-05
Total 11 0.004337

The F value (35.8954) is more than critical value (4.96) and p value is less than 0.05. Thus, we reject the
null hypothesis.

Table: Regression Analysis

Multiple R 0.884372

R Square 0.782113

Adjusted R Square 0.760325

Standard Error 0.00972

Observations 12

The value of R square is 78.2% which shows that the 78.2% variation in enrolment in primary
education is due to the explanatory variable i.e. the government expenditure on education sector
in India. This shows that the for better education government needs to spend on the education
sector as it will increase the presence of literate people.

H 0 : There is no significant relationship between government expenditure on health and infant

deaths.
H 1 : There is significant relationship between government expenditure on health and infant
deaths.

Table: Government Expenditure on Health and Number of Infant Deaths

Year Expenditure on Health Number of Infant Deaths

2002-03 2921.81 1650996
2003-04 3761.12 1608050
2004-05 4311.37 1528865
2005-06 6684.49 1467215
2006-07 8325.66 1430244
2007-08 10726.78 1393882
2008-09 13750.5 1306175
2009-10 15888.84 1215707
2010-11 18641.47 1169205
2011-12 19447.67 1017732
2012-13 24261.06 1007370
2013-14 27565.29 956818
Source: Ministry Annual Reports and World Bank

Rejection region of null hypothesis: Probability value i.e. p value < 0.05

The above model can be represented as:

logY = a+ b logX + u
i i i

; Where Yi is the number of infant deaths

X is government expenditure on health sector

i

The results of the regression analysis are represented in the following table:

Coefficients Standard t Stat P-value Lower Upper Lower Upper

 Error 95% 95% 95.0% 95.0%
Intercept 7.058595 0.100352 70.3386 8.23E-15 6.834998 7.282193 6.834998 7.282193
Expenditure
on Health -0.23597 0.02492 -9.46939 2.61E-06 -0.2915 -0.18045 -0.2915 -0.18045

The regression analysis represents that the value of a is 7.058595 and value of b is -0.23597.
Thus, there is a negative impact of expenditure on health sector on number of infant deaths.
However, the negative impact is not of a great extent, actually the increase is not even satisfying
compared with the expenditure incurred. The probability value is 0.000134 which is less than
0.05. Therefore, we reject the null hypothesis that there is no significant relationship between
government expenditure on health and number of infant deaths. The model is therefore as
follows:

Y = 7.058595 -0.23597logX + u
i i i

Table: Anova Table

Df SS MS F Significance F
Regression 1 0.066427 0.066427 89.6694 2.61E-06
Residual 10 0.007408 0.000741
Total 11 0.073835

The F value (89.669) is more than critical value (4.96) and p value is less than 0.05. Thus, we
reject the null hypothesis.

Table: Regression Statistics

Multiple R 0.948508

R Square 0.899668

Adjusted R Square 0.889635

Standard Error 0.027218

Observations 12

The value of R square is 89.9% which shows that the 89.9% variation in number of infant deaths
is due to the explanatory variable i.e. the government expenditure on health sector in India. This
shows that the for better health and longevity of life government needs to spend on the health
sector as it will increase the standard of the life of people.

From the findings of this chapter, some conclusions and recommendations will be made on the
basis of the data and its analysis. And will talk about the bottlenecks which are there in the
economy.

Conclusion
This study emphasized that how the expenditure on education and health sector affects the
human resource development of a country. As it is shown in India, the expenditure made by the
government on education and health helped the economy to reduce the number of infant deaths
and to increase the number on enrolment in the primary education. If the enrolment in primary
education increases it means that the population is getting minimum education up to 8th class and
knows that how they are willing to proceed in life with the help of this education. This helps in
changing the thinking of the people and motivating them to take education instead of working on
the fields as it is observed that the major part of the illiterate population is of rural population
because they are willing to work on fields instead of getting the education. So, this can be
noticed that the expenditure on education helped in increasing the number on enrolment in
primary education. And in the second part, it is shown that expenditure on health helped in
reducing the number of infant deaths in India. The number of infant deaths has reduced
significantly over the years.

The government has played a dominant and a crucial role in developing the human resources of
the government. The goals laid down by the United Nations Development Programme also
suggests to make good human resource for sustainable development. The 3rd and 4th goals laid by
UNDP talks about the education requirements and health concerns of the people and the
parameters given by it to measure these goals are also detailed by them. The human resources are
given major part to be played in the sustainable development.

Along with the increasing expenditure on these two sectors, the government introduced various
policies and schemes for providing proper health benefits and for imparting education to all the
people. These policies included free education as well as giving wages for their contribution they
made on projects and providing free delivery charges to the mother and also giving free
transportation to them and providing any type of check-ups or medical facilities to the infants
upto 30 days of delivery.

From this it is clear that Indian economy is making good plans and formulating effective and
efficient policies but the implementation is not up to the mark. After making massive
expenditures in these sectors the improvement in social sector is still not of that content. The
economic growth does not mean that the development is taking place; all the people are not able
to take the benefits of it because of which it does not led to the development of the whole
economy. The achievements of the expenditures incurred are not satisfying. May be the reason
for this is corruption within the system. Only a portion is enjoying the benefits of these
expenditures because of which it is said to be development of few people only. For having
sustainable development, inclusive growth strategies are needed to be made to attain the
development in real terms not only in the form on numbers and data.

Recommendations
As seen through the study the impact of education and health expenditures on the economy is not
that much what was expected to be. There are various bottlenecks within the system which has
hampered the growth and development of the country. After all the efforts, policies and schemes
made by the government the education and health sector are not able perform well.

The first effort or step which is needed to be taken is to reduce the corruption prevailing within
the system. All the policies and schemes are affected by it as all the expenditure made does not
goes to the public instead a major part of the expenditure goes to the management and people
involved in corruption. The facilities which are provided by the government are not there in
every region or area because of which the people are not able to avail them. The government
should provide the health and education facility in every region so that a major part of the
population is able to enjoy them. The government should also monitor the policies and schemes
effectively that whether they are implemented effectively or not. These checks should be made
mandatory as better implementation is responsible to make a policy better; without good
implementation even, a great policy will not make an impact on the economy. And with these
policies more national security policies should be made as the previous ones are not making an
impact which is required for the development of the country.

As discussed earlier also the development is not enjoyed by all the people instead only a part is
enjoying the benefits. The development in India till now means the development of few people.
For a better growth, it is important for the economy to include all the people in the development
process and inclusive growth is the need of the hour. For making this possible a higher
percentage of GDP should go to the social sector. Only the better human resources will make the
economy able to develop and grow. For providing these facilities, good and efficient
infrastructure is required and the infrastructure available in India is not good enough to cope with
the increasing need of the population. The rapidly increasing population in India is also
responsible due to which the social sector is not able to grow. So, awareness should be made
among the people and the birth rate is needed to be reduced. Like in China, one child norm
policy was made because of which China was able to develop at the that rate as they were able to
control their population. In India this type of policy is required to be made so that the population
somehow becomes stable with time. If this happens then the burden of the government will
reduce to a great extent.
Thus, from all this it is clear that the Indian economy is expected to develop its social sector but
the return on these expenditures will be comparatively low as it can be seen that the expenditure
incurred is not able to impact the human resources to a great positive extent. The expenditure
incurred is showing good effects but of not that extent which was required to take place.

So, for this the main recommendations are that the government should made quality budget for
developing the social sector and the budget making process should be made effective.
Government should invest according to the needs of the economy. Population control policies
could also be made for getting sustainable human resources. Policy implementation and policy
checks should be done on regular basis. These recommendations could possibly help the
economy to establish a good and sustainable social sector and will help in inclusive and
sustainable development of India.