Trends of Public Expenditure on Infrastructure in Karnataka

Abstract

This article examined the trends and patterns of Public expenditure on infrastructure across economic and social sectors in Karnataka and also analysed the association between capital expenditure spent on various socio-economic services with GSDP. It found that there is significantly high positive correlation between capital expenditure spent on various socio-economic services and GSDP. Further the share of Capital Expenditure on Economic services in total Capital expenditure has declined, but the share of Capital Expenditure on Social services in total has seen increase. The share of Capital Expenditure in GSDP seems lower in the context of infrastructural development. The Government should reform its investment policies on infrastructure whenever it feels that its investment on infrastructure is inadequate and accordingly the capital investment has to be realigned across economic and social sectors in the state.