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Burgeoning expenses on salary, pension cripple spending by states

On an average, salaries, pension and interest payouts alone make up 40% of a state's total expenditure, leaving little room for spending in other critical areas

salary, hiring
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Jayajit Dash Bhubaneswar
The spurt in expenses on salaries, pension and interest cost is hurting the ability of states to put aside sufficient funds for socio-economic programmes and capital expenditure.

On an average, the three components -- salaries, pension and interest payouts make up 40 per cent of a state's total expenditure. A study by CARE Ratings reveals there are 12 states where the spend on these three components has surpassed 40.5 per cent of overall expenditure. This has left the states with a shrinking expense pool for other critical areas.

In Himachal Pradesh, the share of committed expenditure is the highest, at

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