Key Terms & Concepts — UPSC Mains
Committed Expenditure
"Government spending on obligations that cannot easily be reduced or deferred — primarily salaries, pensions, and inter..."
Government spending on obligations that cannot easily be reduced or deferred — primarily salaries, pensions, and interest payments on debt — which crowd out productive capital expenditure when they consume too large a share of the budget.
Key concept in India's state fiscal health debate. NITI Aayog's Fiscal Health Index 2026 (released March 2026) flags high committed expenditure as the primary driver of fiscal stress in Punjab, Kerala, West Bengal, and Andhra Pradesh. When committed expenditure rises above 50% of revenue receipts, capital expenditure — the most productive government spending — is squeezed first. Use in GS-3 (Public Finance) and GS-2 (Fiscal Federalism, Finance Commission).
Punjab's committed expenditure — salaries, pensions, and interest payments — consumes approximately 55–60% of its revenue receipts, leaving almost no fiscal space for roads, water supply, or health infrastructure investment.