Efficiency in Public Spending

Public Spending,

Expenditure,

Efficiency,

India,

State,

Elementary Education,

Rural Roads,

Rural Water Supply,

Efficiency analysis uses key parameters termed as inputs, outputs and outcomes to measure the pace flow and degree with which expenditure occurs. The basic unit of study under this report is the State. It could be argued that spending by the government is among the most significant inputs in achieving the desired outputs and outcomes in the social sector. The present work analyses the efficiency in public spending in three key sectors- elementary education, rural road and rural water supply. The work employs data envelopment analysis (DEA) to study the relative efficiencies at which various states in India operate. The linkages and possible factors impacting these efficiency levels have been studied in this study using regression analysis which follows the DEA.