Spending on social welfare schemes by the top 11 Indian states — accounting for 75-80 per cent of aggregate gross state domestic product (GSDP) — is expected to reach a decadal high of over 1.7 per cent of GSDP, or Rs 4 lakh crore, according to the budget estimates (BE) of these states for fiscal 2024.
These expenditures have risen consistently in the past few years, from 1.2-1.3 per cent of GSDP on average before fiscal 2018 to 1.6 per cent in fiscal 2023, according to revised estimates. Going by the taxonomy of state government budgets, revenue expenditure for ‘social welfare’ refers primarily to disbursements which take place in the form of direct transfers, cash incentives and distribution of personal or household goods, Crisil said in a report.
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