Social Sector Investment and Healthcare Outcomes: A Case Study of Assam

Abstract

Human resource development is a cornerstone of societal progress, emphasizing development of, by, and for the people. Health and education are its primary pillars: health serves as the foundation for development, while education accelerates its pace. The financing of the health sector and its associated challenges have garnered significant attention among policymakers. This paper examines the influence of social sector expenditure—encompassing education, arts and culture, medical services, family planning, public health, sanitation, and other community services—on human resource development in Assam. Specifically, it investigates the impact of increased social sector spending on crude birth rate (CBR), crude death rate (CDR), and infant mortality rate (IMR). Findings reveal that while higher expenditure significantly affects CBR and CDR, its impact on IMR remains negligible. Compared to national benchmarks, Assam’s performance in these indicators is less satisfactory. The study also highlights a theoretical and empirical correlation in Assam: a decline in CDR is associated with a reduction in CBR. These insights underscore the need for targeted policy interventions to enhance health outcomes and human resource development in the region.