Abstract

This policy brief presents insights into the landscape of public finance for social sector programs in Odisha, derived from a comprehensive study conducted by Centre for Budget and Policy Studies, Bengaluru, in collaboration with UNICEF Odisha Office. The brief highlights the critical role of social sector expenditure in driving inclusive economic growth and human capital development, especially in the state grappling with high poverty rates and subpar social indicators.

Examining the period spanning over seven years, the analysis reveals that while Odisha has witnessed an increase in total expenditure, the allocation to social sector programs has remained relatively stagnant. This poses challenges for sustainable development, especially in addressing the needs of marginalised communities and improving infrastructure in crucial sectors like education, health, water, and sanitation. Furthermore, the brief identifies discrepancies in fund utilisation, with many important schemes experiencing low utilisation rates due to factors such as insufficient infrastructure, staffing issues, and ineffective monitoring mechanisms. These inefficiencies underscore the need for enhanced revenue collection efforts, prioritisation of social sector spending, and streamlined processes to improve fund utilisation and ensure effective implementation of programs.

The policy implications outlined in the brief stress the significance of investing in children’s well-being and conducting deeper analysis of social sector expenditure through public expenditure reviews. These measures are crucial for sharpening the focus of public expenditure and addressing existing challenges to foster sustainable development and inclusive growth in Odisha.

CBPS. (2018, August). Public Finance for Social Sector Programmes in Odisha. Bengaluru: Centre for Budget and Policy Studies.