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Dynamic Patterns of Government Spending Allocation in Indian States

Ranjan Kumar Mohanty & Deepak Kumar Behera

Indian Economic Journal2026https://doi.org/10.1177/00194662251410147article
ABDC B
Weight
0.50

Abstract

This study examines the allocation and fluctuation of 12 major categories of government spending at the state level in India. Using panel data from 15 prominent Indian states from 1990 to 2021, a panel autoregressive distributed lag (ARDL) method is employed. The findings reveal that increased central government funding encourages spending on education, agriculture, irrigation, disaster management, nutrition, and rural and urban development. In contrast, economic growth and increased revenue shift focus to energy, healthcare, urban development, transportation, communication, and water supply and sanitation. High public debt adversely affects all spending categories, highlighting the cyclic nature of various expenditures. JEL Codes: H50, H72, E32, C33

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https://doi.org/https://doi.org/10.1177/00194662251410147

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@article{ranjan2026,
  title        = {{Dynamic Patterns of Government Spending Allocation in Indian States}},
  author       = {Ranjan Kumar Mohanty & Deepak Kumar Behera},
  journal      = {Indian Economic Journal},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/00194662251410147},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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