PUBLIC EXPENDITURE AND STANDARD OF LIVING OUTCOMES UNDER SDG 1 AND SDG 6: A COMPARATIVE ANALYSIS OF KERALA AND MADHYA PRADESH, INDIA

Abstract

This paper assesses how public expenditure translates into improvements in standard-of-living outcomes under SDG 1 (No Poverty) and SDG 6 (Clean Water
and Sanitation) through a comparative analysis of Kerala and Madhya Pradesh. Drawing on scheme-level allocation and implementation data from 2011–12 to
2023–24, the study applies an input–output–outcome framework linking public spending under MGNREGA, PMAY-G, SBM-G, Jal Jeevan Mission, and DAY–
NRLM to changes in multidimensional poverty. The Multidimensional Poverty Index (MPI) is used as an aggregate outcome measure. The findings suggest that
while increased expenditure is associated with improved housing, sanitation, water access, and livelihood security, fiscal outlays alone do not guarantee
equivalent outcomes. Institutional capacity, baseline deprivation, and implementation context significantly shape results. The paper argues for context-sensitive
fiscal design, stronger local governance capacity, and outcome-based monitoring to enhance the effectiveness of public spending and accelerate progress toward
inclusive and sustainable development goals.