Abstract. This study examines the impact of education expenditure, health expenditure, and Gross State Domestic Product (GSDP) on the Multidimensional Poverty Index (MPI) across selected Indian states during 2000–01 to 2022–23. The empirical analysis employs panel data techniques including Fixed Effect, Random Effect, Hausman specification test, and Driscoll–Kraay Fixed Effect estimator using an unbalanced panel dataset of 322 observations. The findings reveal that health expenditure has a negative and statistically significant effect on multidimensional poverty, indicating that higher public healthcare expenditure reduces deprivation across states. In contrast, GSDP shows a positive and significant relationship with MPI, suggesting that economic growth alone may not reduce poverty without inclusive development policies. However, education expenditure was found to be statistically insignificant during the study period. The study emphasizes the importance of strengthening social sector expenditure, particularl

Keywords: Multidimensional Poverty Index, Health Expenditure, Education Expenditure, GSDP, Panel Data, Driscoll–Kraay Estimator, Indian States.