Government Spending on Social Welfare Programs and its Effect on Human Capital Development in India

Abstract

Purpose: The aim of the study was to assess the government spending on social welfare programs and its effect on human capital development in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicates a complex relationship with varying outcomes depending on factors such as program design, implementation, and socio-economic context. Generally, adequate investment in social welfare programs, including education, healthcare, and social assistance, can contribute positively to human capital development by improving access to essential services, reducing poverty and inequality, and enhancing individuals' capabilities and productivity. However, the effectiveness of such spending depends on efficient resource allocation, targeted interventions, and proper monitoring and evaluation mechanisms to ensure desired outcomes. Additionally, the study suggest that excessive reliance on social welfare programs without complementary measures for skill development and employment opportunities may lead to dependency and disincentivize workforce participation, thereby limiting long-term human capital development. Implications to Theory, Practice and Policy: Human capital theory, social investment theory and welfare state regime theory may be used to anchor future studies on assessing the government spending on social welfare programs and its effect on human capital development in India. Policymakers should implement targeted interventions aimed at improving human capital outcomes in marginalized communities. Governments should enhance coordination between different levels of government and across policy domains to maximize the impact of social welfare spending on human capital development.