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Public Expenditure in India - Coggle Diagram
Public Expenditure in India
Reasons for Privatisation Despite Public Expenditure
Private Sector Efficiency
Innovation and technology adoption
Competitive pricing
Example: Indigo thrived vs Air India’s decline
Inefficiency in Public Sector
Overstaffing & corruption
Bureaucratic delays, poor sevice
Fiscal Deficit Pressure
Rising debt due to subsidies
Example: Fertiliser subsidy ₹2 lakh crore in 2022–23
Need to reduce expenditure burden
Globalisation & Reform Agenda
LPG reforms (1991 onwards)
Pressure from global institutions (IMF/WB)
Example: Air India disinvestment (2021) due to decades of losses
Attracting FDI
Why even after so much public expenditure is there privatisation of public sectors?
Social Services
Health
Primary Health Care
Government Hospitals
Welfare
Rural Employment
MGNREGA (100 days employment)
Social Security
Education
Scholarships & Subsidies
SC/ST/OBC scholarships
Girl child education schemes
Government Schools & Colleges
Housing
Urban Housing
Rural Housing
Economic Services
Transport
Agriculture
Subsidies
Fertilizer subsidy
Crop insurance (PMFBY)
Infrastructure
Energy
Industry
MSME Support
Public Sector Units (PSUs)
General Services
Police & Security
Internal Security
Disaster Management
Judiciary
Administration
Salaries (government employees, pensions)
e-Governance programs
Defence