An autonomous research institute under the Ministry of Finance


COVID-19 and Public Investment for Children: The case of Indian State of Karnataka

Publication date

Oct, 2021


NIPFP Working Paper No. 355


Jannet Farida Jacob and Lekha Chakraborty


The ex-post analysis of public finance for children (PF4C) for the year 2020-21 for the State of Karnataka reveals that it constitutes 15 per cent of the total public expenditure and 1.68 per cent of GSDP. Of this, 80 per cent is spent on education. The fiscal marksmanship ratio and the PEFA score for PF4C indicate that there are significant deviations between budget allocation and actual spending. Karnataka though is a fiscally prudent State, with all its fiscal parameters well within the stipulated limits of “fiscal rules”, resorted to episodic expenditure compression in social sector which in turn impacted PF4C. Given the impact of the COVID-19 pandemic on education, health and income, it is imperative for the State to look beyond the transitory fiscal stimulus packages and strengthen the long-term PFM tool like child budgeting.
JEL Codes: H30, H750, E62
Keywords: Public Financial Management, Child Budgeting, State Expenditure, Karnataka
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