Public expenditure has grown both relatively and absolutely in all the states of the Indian Union. The developmental process in any society had then to be conditioned by priorities policy set by the state. Accordingly the level and direction of public expenditure allocations were to be design for their maximum beneficial impact on economic and social sectors in order that income growth and the performance on social indices reinforced each other. The significance of public expenditure as an instrument of promoting the socio-economic development of a country is well accepted by the development economists in modern times all over the world, particularly in the developing countries which shelters roughly two-thirds of the world’s poverty ridden people. In a socialistic and welfare characterized state, governments directly intervene in achieving an efficient allocation of resources, in achieving an equitable distribution of income and finally in maintaining economic stability in the economy. The growing concern over the necessity of improving the future well-being of the people is of paramount importance, and therefore, has impelled the governments of the developing countries including India to overcome the problems of mass poverty, unemployment, social and economic backwardness etc.