Madhya Pradesh is a state that is "off-track" in achievement of most of the Millennium Development Goals, with wide variance on development outcomes between districts. This study examines the link between public expenditure, quality of governance and human development outcomes in the state, and finds that development expenditure by itself is insufficient in achieving human development at the district level. Public expenditure has better outcomes in districts with better governance indicators, indicating the need to focus on improving governance mechanisms as well as increasing development expenditure.