MUMBAI: India's social sector spending remains "woefully" below peers, including Latvia and Iceland, in terms of GDP, according to a study published in RBI's monthly bulletin.
The conclusion is based on an analysis of 17 countries, including India, with respect to their social sector expenditure as per cent of GDP (2016).
The study titled 'Union Budget 2018-19: An Assessment' has been published in the latest monthly bulletin.
RBI said the views expressed in the study are that of the authors and do not pertain to the institution they belong to and "usual disclaimers apply".
The study has been prepared by two research officers under the overall guidance of an official at RBI's Department of Economic and Policy Research.
With the National Health Protection Scheme under the 'Ayushman Bharat' programme and the reform of the education system, the expenditure on health and education together is budgeted to grow by 4.6 per cent as per the 2018-19 Budget, it said.
"In terms of GDP, the social sector expenditure, primarily constituting health and education in India continues to remain woefully below peers," it said.
The other 16 countries whose data have been analysed are Korea, Latvia, Iceland, Israel, Ireland, Estonia, Slovak Republic, Czech Republic, Poland, Hungary, Slovenia, Portugal, Spain, Greece, Italy, and Belgium.
As per the chart cited in the study, India's social sector expenditure as per cent of GDP in 2016 was 7.5 per cent whereas it was 29 per cent in Belgium, 15.2 per cent in Iceland, 14.5 in Latvia and 10.4 per cent in Korea, among other countries.