The impact of public spending in education and health on human development in India

Abstract

This study examined the effect of public spending on education and health sectors on human development in India. Data for the period 1990–2018, obtained from UNDP and World Bank databases, were used. The ARDL model technique was used for data analysis. In the long run, the findings showed that public expenditure on health and education has positive and negative significant effects, respectively, on human development in India. In the short run, results indicated that the public expenditure on health and education has positive and negative respectively insignificant impacts on human development in India. In addition, GDP per capita has been found to have positive but insignificant impact on human development for both long run and short run. The findings of this article suggest that government of India should rise funding for health and education with proper targeting.