This book deals with the controversial issue of the impact of economic reforms on the social sector. The issue is particularly important in the developing countries of South Asia which have large populations characterised by poverty, illiteracy, morbidity and malnutrition. Given India's federal system and the responsibilities of state governments, the study is based on an analysis of two states - Maharashtra and Tamil Nadu.

Studying both macro and micro level data, the book covers such issues as:

· fiscal stress

· overall economic growth

· government allocation to the social sector

· district-level expenditure

· quality of health, education and nutrition provided by the government