Electoral Outcomes and Provision of Public Goods: A Case Study of India

Abstract

ABSTRACTThis paper analyses the implications of political factors on provision of public goods by state governments in India. Using data on state governments’ expenditure and constituency results of states' Legislative Assembly elections during the period 1971–2005, it demonstrates that the greater the spread of ruling party's strength across legislative constituencies in a state, the higher the share of developmental expenditure in revenue budget. It also documents that the share of developmental expenditure in revenue budgets is positively associated with voter turnout and with a change in the political party in power. Interestingly, delivery of public goods in a state does not appear to have any significant relation to the form of the government – single party or coalition. It also shows that economic liberalization has reduced governments’ responsiveness to provision of public goods.