What are governments spending their budget money on?

In 2015-16, on an average, 21% of the budgets of the centre and states was set aside for interest payments and pensions—‘bad spending’ that doesn’t yield any return. Chhattisgarh allocated a greater percentage of its budget to agriculture than any other state: two-and-a-half times that of Madhya Pradesh, from which it was carved out in 2000. Goa and Jammu & Kashmir spent close to one-fifth of their budgets on power.

The matrix below shows where the Union government and 31 state governments spent in 2015-16. It shows how a state’s spending on 15 key items broken across three categories compares with peers, with the gradation going from green (relatively better) to red (relatively worse).

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