1) It assumes the problem is due to lack of money - that India being poor is not spending enough and throwing money at the problem would make it go away.
2) It completely disregards that the government has multiple departments who can independently make progress in varying fields.
It was 0.02% of a single year's expenditure ($725 billion) by the Indian federal government-- spread out over multiple years.
It amounted to approximately 0.005% of India's GDP ($2.7 trillion).
And the money spent didn't disappear it went into infrastructure, manufacturing, and other mostly domestic pockets.
The only money that disappeared from the economy was the value of the fuel burned and materials not returned to earth from space.
Those 11 cents per person (well, let's call it 10 because the value of the craft on the moon in pieces) are floating around the economy, ready to be spent on water supplies.
Going to the moon isn't just dumping money into getting from point A to B, like paying for gas during a daily commute. It's about advancing technology that improves life for everyone. Just look at this list: https://en.wikipedia.org/wiki/NASA_spinoff_technologies
Hopefully, a few of these people become entrepreneurs.
Paving same road 3-4 times is not development.
This corruption is lower in centrally funded large scale expressways because lot of data logging, monitoring etc. is done nowadays. Having said that execution with < 10% money being pilfered means a highly successful project.
Indian bureaucracy always finds a way to slow down any expenditure on public infrastructure, unless they manage to get something of it for themselves. The system is so well evolved in all cases, e.g. agri subsidies are only given to farmers who pay middlemen 10% of the amount in cash (which is actually a progress !). The money transfers is handled by middlemen and not by the Govt. officials themselves.
The only slow solution to reducing this corruption has been technology, cashless digital transfers etc. It will take another 10 years to reduce to 'acceptable' levels.