Reprioritisation of Public Expenditure for Human Development

An important method of managing resources to finance consistent and balanced human development lies in the reprioritisation of current expenditure in accordance with the urgent needs and shortfalls in particular areas. Such reprioritisation should also lead the states to a better macroeconomic future, through improvements in key areas. The key issue then is: what scope is there for reallocating public expenditures at the state level to finance increased attention to human development? To provide some empirical content to this discussion, the authors try to develop an objective method for reprioritisation of public expenditure in this paper. The suggested framework may be taken to yield a benchmark for any prescription for expenditure reallocation. [NIPFP WP]