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India's governance spends are lower than US, emerging market peers

Business Standard

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March 05, 2025

Health has lowest share of paid public-sector employment, while education's share stands at 30%

- SACHIN P MAMPATTA

India spends a lot less on its public sector than the United States (US), which is axing employees and cutting costs under President Donald Trump.

India spends 5.5 per cent of its gross domestic product (GDP) on wages of workers in the public sector as against 9.5 per cent in the US and 9.8 per cent globally, shows the data compiled from the World Bank Worldwide Bureaucracy Indicators.

The Elon Musk-headed Department of Government Efficiency (DOGE) has been taking steps to downsize the government establishment, including those working at the National Aeronautics and Space Administration (NASA) and hundreds of weather forecasters.

India also spends less than other emerging-market peers like Brazil, South Africa, and Russia.

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