The principal objective of this paper is to test whether public expenditures on education, health and development activities have been effective in reducing poverty in India. For sensitivity and robustness of the results, three different measures of poverty belonging to the...

The relationship between public expenditure and aggregate income has long been debated in economic literature. According to Wagner, expenditure is an endogenous factor or an outcome. On the other hand, Keynes considered public expenditure as an exogenous factor to be used as a policy instrument...