THE DEVELOPMENT EXPENDITURE BY THE CENTRAL GOVERNMENT OF INDIA AND ITS IMPACT ON POVERTY AND PER CAPITA INCOME IN THE COUNTRY

This study tests the impact the four major Development Expenditure heads of the Government, namely Agriculture, Education, Health and Social Security schemes and whether they have the desired effect in increasing per capita incomes and reducing poverty in the country.The recent report from World Bank indicated that 32.7% of Indians lived under the internationally poverty line of $1.25 a day. USA’s CIA’s international rankings for Per Capita Income, puts India far behind at 161, behind majority of the nations. The government of the largest democracy is scurrying to fix a crippling economy, and its economic policies are very crucial.This study makes inferences that can be adopted in future macro policies, especially deciding the budgetary levels of the various heads. Also, it points out how plugging of ‘leaked’ or mismanaged funds can lead to drastic benefits for the country