Financial pinch affected Telangana’s spending on Health and Education, reveals White Paper

Telangana's budgeted expenditure on Education & Health among lowest in India; report highlights need for increased investment for economic growth.

The dire financial condition of Telangana has a link to low allocations for crucial sectors like Health and Education, according to the Telangana State Finances - White Paper released by the State’s finance department in the Legislative Assembly on Wednesday.

The White Paper highlighted that Telangana’s budgeted expenditure on education and health is among the lowest in the country when compared to the total expenditure. The State of State Finances report from PRS (October 2023) revealed that, for the fiscal year 2023-24, Telangana is projected to allocate only 5% of its overall budgeted expenditure to Health & Family Welfare, ranking it as the fourth lowest in the nation and falling 1.2% points below the national average of 6.2%.

The report also stressed the impact of high out-of-pocket healthcare expenditure, particularly on the economically disadvantaged.

In the Education field, Telangana faces a similar disparity. According to State ofState Finances report from PRS (October 2023), while the average state expenditure on education is estimated to be 14.7% of the budget in the fiscal year 2023-24, Telangana is expected to allocate only 7.6%, marking the lowest in the country and nearly half the national average.

The report added that education plays a pivotal role in poverty reduction and addressing inequality, serving as the foundation for sustained economic growth. Investments in education are deemed essential for equipping individuals with the knowledge, skills, and critical thinking abilities necessary for a productive workforce and for fostering a more equitable economy. The National Education Policy 2020 (NEP 2020) envisions a substantial increase in public investment in education, urging both the Central government and state governments to reach 6% of GDP. This investment is considered crucial for establishing a high-quality and equitable public education system, vital for India’s future economic, social, cultural, intellectual, and technological progress and growth.