Pranay Kotasthane presented a paper titled The regressive nature of central transfers on health at the International Conference on Public Finance: Theory, Practice, and Challenges organised by the Asian Development Research Institute (ADRI) in Patna on December 7th, 2018.
The paper that Pranay presented was a part of Takshashila’s ongoing economic policy research on public health expenditures. The other authors of the paper are: Devika Kher, Pavan Srinath, and Aashish Chajjer. The advisor for this project is Dr Govinda Rao.
The paper makes the following observations:
- central transfers for health are not linked to health indicators. Instead, such transfers by and large tend to be incremental.
- the specific purpose transfer system for health has not been very helpful in offsetting the fiscal disabilities of the poorer states.
- states tend to substitute grants received from the union for their own spending. Hence no commensurate increase in overall spending.
The presentation is given below.