Social Sector Priorities: An Analysis of Budgets and Expenditures in India in the 1990s

Abstract Many policies in India, including economic reform policies, are officially intended to alleviate poverty. But how committed is the Indian government? And to what? This article addresses India's social spending priorities over the past decade. Looking at the rhetoric in budget speeches, actual expenditure patterns and the process by which budgets are formulated, it finds a widened concept of poverty and a shift away from income and employment programmes to human development. The budget‐making process is not very participatory, and the role of the Finance Ministry has increased. Although the widening of the concept of poverty has positive aspects, within the overall context of structural adjustment it has facilitated the politically convenient neglect of other dimensions (income and employment).