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View Full Version : What can be a possible healthy population to Govt. employee ratio?



Amal
25th March 2012, 06:47
In India, in my state of West Bengal, the sanctioned post by the state Govt. including primary and secondary school teachers, village level and municipality workers and direct govt. employees are just 1 million and at least 35% at present are vacant. While the population of the whole state is 110 million as per the latest census. Can the ratio be considered a healthy ratio? Moreover, keep it in mind that a very large section of population live in villages that have very poor infrastructure like roads and the literacy rate isn't high.
At present, a large part of general population here in India (basically small shop owners, peasants i.e. the petty-bourgeoisie section) are viewing organized sector workers and especially govt. employees as some kind of root of all evil and they firmly believe that the govt. is wasting too much money to pay the "highly paid" govt. workers and the number of employees are too many. That's why very little money is left for development works.
I want to know about population to govt. employee ratio of different countries to compare that with my own. Kindly help me by giving data if you have any.

Lynx
25th March 2012, 07:13
The government has the means to employ people and resources to redress social development and lack of infrastructure.
The ratio of private to government employment will be reflected in the % of India's GDP that is attributable to government services. There is no correct or optimal number. (The US government spends 25-30% of GDP)

When organized sector workers and government employees spend their income, the economy benefits.

Amal
25th March 2012, 07:34
The government has the means to employ people and resources to redress social development and lack of infrastructure.
The ratio of private to government employment will be reflected in the % of India's GDP that is attributable to government services. There is no correct or optimal number. (The US government spends 25-30% of GDP)

When organized sector workers and government employees spend their income, the economy benefits.
Whatsoever, can you inform me about the ratio? What you have isn't clear to me. After all, the Govt. isn't in charge of the whole GDP. Probably you want to mean that govt employees produce 25-30% of GDP. The Govt. only get a part of the GDP as tax and can spent it to pay Govt. employees.

Lynx
25th March 2012, 07:52
Whatsoever, can you inform me about the ratio? What you have isn't clear to me. After all, the Govt. isn't in charge of the whole GDP. Probably you want to mean that govt employees produce 25-30% of GDP. The Govt. only get a part of the GDP as tax and can spent it to pay Govt. employees.
Maybe this will make it more clear:

Who Consumes Canada's GDP?

Canada's 2011 GDP was consumed in the following fashion:

Personal Consumption 57%
Government expenditure 21%
Business Investment (buildings and equipment) 19%
Government Investment 4%
Net Exports -1%
Total 100%

Source: http://www.investorsfriend.com/Canadian%20GDP%20Canadian%20imports%20and%20export s.htm


Thus 25% of the economy is attributable to government while the balance remains within the private sector. To cut government is to cut GDP. The private sector can grow, but it will only invest and produce what is profitable.

Amal
25th March 2012, 08:12
Maybe this will make it more clear:

Who Consumes Canada's GDP?

Canada's 2011 GDP was consumed in the following fashion:

Personal Consumption 57%
Government expenditure 21%
Business Investment (buildings and equipment) 19%
Government Investment 4%
Net Exports -1%
Total 100%

Source: http://www.investorsfriend.com/Canadian%20GDP%20Canadian%20imports%20and%20export s.htm


Thus 25% of the economy is attributable to government while the balance remains within the private sector. To cut government is to cut GDP. The private sector can grow, but it will only invest and produce what is profitable.
That means the Govt. spends 25% of money on just routine activities like pay of employees, office expenditure etc and only 4% for development purpose? Am I right?

Lynx
25th March 2012, 08:30
That means the Govt. spends 25% of money on just routine activities like pay of employees, office expenditure etc and only 4% for development purpose? Am I right?
Yes. The StatsCan table breaks it down as:
Government current expenditure on goods and services: 359,984
Government gross fixed capital formation: 70,536
Government inventories: 1

21%, 4%