Public services to cost India Rs 3.2 tn

According to the report, costs primarily associated with increased spending on citizens for healthcare and growth of the ageing population are estimated to require the Indian government - at the central, state and local levels - to spend an additional Rs 3.2 trillion (1.5 per cent of GDP) by 2025.

"More than Rs 3.2 trillion in projected additional costs for Indian public services by 2025 presents government leaders - at all levels - - with a new reality," Accenture's global Health and Public Service business in India Krishna Giri said.

The report further noted that India could save as much as Rs 3.3 trillion in annual expenditures by 2025 by increasing public-sector efficiency by 1.11 per cent a year - enough to close the gap.

"Increasing public-sector efficiency gives government leaders an option beyond just the traditional choices of cutting services and raising revenue and, our research showed, citizens want government to provide services in a more cost-effective way," Giri said.

The report 'Delivering Public Service for the Future: Navigating the Shifts', said that the cost is projected to total Rs 22.9 trillion, 11 per cent of GDP, by 2025.

According to the survey, public service expenditure of the 10 countries in US dollar terms are Australia USD 50 billion, Brazil USD 70 billion, Canada USD 90 billion, France USD 100 billion, Germany USD 80 billion, India USD 70 billion, Italy

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