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VOL. 7, ISSUE 2 (2025)
Growth patterns and structural shifts in Karnataka’s social sector spending: An empirical study
Authors
N Ganteppa Shetty, Dr. Dasharath S Naik
Abstract
This study analyses the growth patterns,
structural shifts, and expenditure dynamics of Karnataka’s Social Sector
Expenditure (SSE) from 2005 to 2023 using secondary data sourced from RBI State
Finances and Karnataka Budget documents. The analysis employs advanced
statistical tools, including Compound Annual Growth Rate (CAGR), Structural
Shift Index (DSI), Cuddy–Della Valle Instability Index, and Expenditure
Elasticity, to assess both long-term trends and inter-sectoral variations. The
findings reveal that overall SSE expanded more than sixfold during the study
period, demonstrating Karnataka’s strong fiscal commitment toward human
development. While education continued to receive the largest allocation, its
relative share declined, reflecting a diversification of social priorities.
Health expenditure showed the most rapid growth, driven by increasing
healthcare needs, modernization efforts, and post-pandemic reforms. Welfare and
rural development spending also expanded substantially, though with moderate
instability linked to policy-driven fluctuations. The DSI value indicates a
moderate structural shift in expenditure composition, particularly due to
rising health and welfare allocations. Elasticity analysis reveals that health
and welfare expenditures are income-elastic, growing faster than GSDP, whereas
education remains income-inelastic. Overall, the results indicate a
transformative shift in Karnataka’s social expenditure landscape, characterized
by broader sectoral balance and increasing emphasis on health and welfare. The
study concludes with policy recommendations aimed at enhancing efficiency,
ensuring stable funding, and strengthening evidence-based budgeting to improve
social outcomes. Future research may incorporate micro-level data, inflation-adjusted
analysis, and econometric methods to deepen understanding of expenditure
impacts.
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Pages:208-212
How to cite this article:
N Ganteppa Shetty, Dr. Dasharath S Naik "Growth patterns and structural shifts in Karnataka’s social sector spending: An empirical study". International Journal of Social Research and Development, Vol 7, Issue 2, 2025, Pages 208-212
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