“Karnataka’s spending on health and education inferior to others”


The rate of education and health spending relative to aggregate state spending during the period 2019-2020 was lower than neighboring states and also below the general states / national average category, according to the report of the Comptroller and Auditor General (CAG) of India.

While the actual rate of Karnataka spending relative to overall education and health spending in 2019-2020 was 4.28% compared to the general state spending category of 5.21%, Kerala spending were 6.59%, Tamil Nadu 5.13%, Andhra Pradesh 4.86%, Telangana 5.14%, Maharashtra 4.34% and Madhya Pradesh 4.7%.

Quality of spending

“The higher the ratio of these components (health and education) to total expenditure, the better the quality of expenditure is considered,” the report states.

Despite the state’s reliance on huge market borrowing of 48,499 crore in 2019-2020, the increase in capital expenditure for various development works compared to the previous year (2018-19) did not was only 1% and the share of capital expenditure in total expenditure was 19%, according to the report.

The Comptroller and Auditor General’s report, on state finances ending March 2020, indicates that there have been cost and time overruns and that the state government has to bear an additional burden in terms of debt service and interest on loans contracted for the implementation of projects.

Loan recovery

The report tabled in the Legislature on Wednesday indicated that the recovery of loans made by the state government to various institutions was meager and represented less than 1% of the opening balance of outstanding loans during the period 2019 -2020.

An amount of 4,069 crore was advanced to various institutions in the form of loans in 2019-2020 and the loan recovery was 203 crore during the year.

Gender budget

Although the state budget increased its allocation to gender budgeting each year, the gender budget process lacked comprehensive analysis, sex-disaggregated data and a monitoring mechanism, according to the Comptroller and Auditor General’s report.


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