Abstract

This policy note presents the results of a study undertaken in Karnataka to estimate multiplier effect of public spending on social sector in the state using two methodologies: Input-Output Table (IOTT) and Social Accounting Matrix (SAM). We use the lens of ‘multiplier’ here to argue that public spending in social sectors is critical for human development and well-being, which in turn can also boost and sustain economic growth both in the short and long run. Expenditures on education, health, early childhood and related areas should thus be viewed as investment and not mere consumption. We analyse the extent of income generation by investing public money in social sectors by assessing the multiplier effects of public investment in social sectors.

Apurva, K. H., Yareseeme, A. S., Jha, J., Purohit, A. (2020) Estimating Multiplier Effect of Social Sector Expenditure in Karnataka: An exploration through the Input – Output table and Social Accounting Matrix.