Determinants of Public Expenditure in Southern States of India:Panel Data Analysis

Abstract

The success of public expenditure depends on the government's efforts to ensure the effectiveness of the public expenditure with appropriate composition, but the major states in India failed to pay adequate attention. The objectives are the growth and trend of public expenditure in Southern States and to study the determinants of the growth of Public expenditure from 1990-91 to 2013-2014. In order to test trends in the revenue expenditure the tools namely panel testing have been applied for estimating the responsiveness of government expenditure to State Gross State Domestic Product (GSDP). The paper is divided into six sections. The first section is introductory in nature and the second discusses the various theoretical developments of public expenditure. Third section deals with objectives of the paper, fourth section deals with methodology. The fifth one provides the results and discussion, especially illustration of public expenditure, growth and composition public expenditure of southern states and lastly conclusions.