The objective of this paper is to study the changes in public expenditures on social sector, as a result of the structural adjustment programme, that might have an impact on the sector’s outcome. Therefore, an effort is made to assess the relationship between per capita public expenditure and the outcome across major states. The findings suggest that, in terms of most of the indicators under study, association between per capita expenditure and the change in outcome in social sector is weak, more so in case of education than in health.