COMPOSITION AND GROWTH OF PUBLIC EXPENDITURE IN ODISHA

The theoretical framework and rationale of the study assess the most important scal parameter of the state of i.e., Public expenditure. As we know, aggregate of the expenditure of the state consists of Revenue expenditure and Capital expenditure, among which the largest share is contributed by Revenue expenditure. The paper highlights the composition, trend, percentage share of different components of expenditure to NSDP and growth of different components of expenditure in Odisha . The study is based on secondary source of data for the State from different government publications, Budget documents, Finance Accounts etc. The paper used different methodologies for analysis, which includes simple statistical techniques such as, ratio, percentage, and also Regression Analysis to estimate growth. In this regard models like, semi log, multiple regression, and correlation are used to analyse the time series data from 1980-81 to 2019-20 on expenditure component of state nances. The major results of the study is that amongst different components of the revenue expenditure, contribution of development expenditure has been signicantly increasing due to increasing share of the social services during the year 2019-20. Higher growth rates are found in case of revenue expenditure followed by non-development and lowest growth rates are exhibited by interest and servicing of debt. And the share of total revenue expenditure of the state was 12.3% in the NSDP during 1980-81, which raised to 22.4% in 2019- 20, this, is more signicantly due to the growth of development expenditure.