 ADDRESS

I am grateful to you, Mr. Chairman for giving me this opportunity of speaking to this distinguished audience. I think your well- marshalled presentation of facts and figures relating to the treatment given to education in the first two years of the Fifth Plan has certainly made a great impact on everybody present here, including the representatives of the Planning Commission. I must say that we fully share your concern and your anxiety that even the highly reduced figure with respect to education, which was adopted finally in the draft plan, may not materialise. I think you are absolutely right in pointing out the serious implications of this state of affairs in relation to the programme of universalisation of elementary education. I therefore would like to say that the Planning Commission is entirely in agreement with the problem that you have posed.

Can we hope to reverse this situation in the years to come, and if, so, what would be the process of such a reversal ? This is the question to which I think we must address ourselves. But before we do so, it is also necessary for me to say why, in the first two years of the Fifth Plan, education had to take a sort of back-seat, as compared to what was anticipated. You have, Mr. Chairman pointed out yesterday and I think the Prime Minister also mentioned, that allocations to social services

could be more easily cut as compared to those of certain other sectors. I think there is some truth in this ; but that is not the whole story. When we were formulating the proposals for the first year of the Fifth Plan, we were faced with certain unexpected problems including increases in costs, a massive increase in the price of oil and its impact on the balance of payment, and the inflationary impact created by A series of domestic events which were reinforced to a certain extent by some international developments as well. Under these circumstances, what the economy really needed, above all, was a certain amount of stability in relation to prices and maximizing the production of food and energy so that it would be possible, in the years to come, to develop more resources for the purpose of development. We had therefore to make a deliberate choice, and A very hard and unpleasant choice, to deal with this unprecedented and difficult situation. We therefore decided that the core sector which give us the maximum amount of mileage in terms of balance of payments and also in terms of providing basic essentials of life, should be safeguarded at any cost. This was a very deliberate and very difficult choice and I do not think that the economy had any alternative to taking such a position at that particular stage. Mr. Chairman, you were yourself very much involved in it as a member of the Council of Ministers and it is the combined decision of the whole Government that this was the way to solve the problem. We have achieved a limited amount of success in that particular regard because the price situation has been brought under control. We have also achieved a certain measure of success in relation to the energy and food sectors which ought to make things easier for us in the years beyond 1976.

Will this lead to a change in the situation? This is the basic question. You were very right in pointing out that unless we make a deliberate attempt to change the process now, we will be slipping very badly. In regard to education, the loss may not be regarded seriously at present. But it will soon become grave and we may face difficult problems five years from

now. I would therefore like this group also to consider and (I am glad that some distinguished economists are also members of this group) the measures that are necessary, now that the economic situation has somewhat stabilised, to mobilise additional resources so that Government is in a position to spend mom on such essential services like health and education. We should adopt a definite policy of mobilising resources, through tax and non-tax measures, particularly from the sectors which have been basically under-taxed. This is an issue which will have to be very strongly emphasised. Mr. Chairman, on the basis of work that we have been doing in the Planning Commission in consultation with the Ministry of Finance, I can tell you that the improvement in the general economic situation does not automatically transform itself into improvement of the government's resource position. It is necessary for me to bring it to the attention of this distinguished body that public opinion in favour of resources mobilisation for the plan as a whole is a prerequisite to getting a larger allocation for education in particular. In an economy such as this, we must always have to give first priority to maximising the resources available to Government. It is only when this is done that the question of distributing these resources among different sectors would arise. In relation to education, I think we should be able to do better provided this particular fact is borne in mind. In other words, what I am mentioning is that the first two years of the Fifth Plan had to concern themselves inevitably with the problems of our economy. But the policy for 1976-77 and thereafter will have to take into account this basic requirement of raising additional resources and evolving a policy of restraint in relation to nonessential expenditure.

Mr. Chairman, having made this particular point and having indicated that an improved economic situation does not necessarily result in an improved financial position for the government in this country, I would like still to mention that we are hoping that, in 1976-77, we may be able to take into account the case for elementary education which has been very sadly

neglected in the first two years. This is a tentative position and we cannot say anything more than that we attach a measure of significance to this particular programme.

You have yourself very rightly pointed out Mr. Chairman, that we should try to make the best out of the existing resources. This in relation to non-plan expenditure. Non-plan expenditure in the sector of education is very large. During 1973-74, the total educational expenditure was estimated to be of the order of Rs. 1600 crores. Recurring expenditure on education has been increasing at the rate of 12 to 13 per cent per year. The increase is much faster than that of the national income. It is not true to say that education has not received priority in our system of planning. Due priority has been accorded to education. Education expenditure went up from 0.5 per cent of the national income in 1950 to 3.5 per cent in 1974. I am mentioning this point not to rebut your argument about what has happened in the first two years of the plan. What we have done is not to be seen. We have, to see what remains to be done and in that connection, the points made by you have been very well taken. It is not the case that educational expenditure has not been increasing. We have to see the returns to this expenditure ; and this requires a careful examination. I have been told that a critical examination of this expenditure in Tamil Nadu has suggested the possibility of considerable savings. If this is so, the same thing can also happen elsewhere. In this connection, it is also necessary for us to think whether it is in the best interest of the country to open new institutions and put more resource, in them, or to expand the existing ones. I may point out that many of the educational establishments in the country have got very low enrolment figures and the result is that the costs to maintain them tend to be relatively high. We have to take a view of this situation and, consider as to what could be done about it.

The other point, that would like to make is in relation to a thorough scrutiny of non-plan expenditure. We may not be able

to augment the availability of resources for education. But certainly resources can be raised through careful local planning and mobilisation of efforts at the local level. We have all to recognize this as a very important strategy for universalisation of elementary education. People who have some experience would know that the mid- day meals which are, supplied to the children and about which a mention has been made here are produced at a very high cost. This is obviously a blind alley. Cannot local resources be raised and efforts made locally so that the surplus is channelised at the local level and is utilised in the educational sector ? This will relieve a considerable strain on the national resources, This is a matter to which we did not pay sufficient attention and I think it would he useful to consider it now because this would be a kind of expenditure which will be met at the local level. I would therefore like this to be considered by the Board. We have also mentioned it in connection with the annual plans. I may also state that, unless an earnest effort is made to; raise resources at the local level, a mere change in the pattern of financing between the Centre and the States will not be sufficient and will not solve the problem.

The other point that I would like to make and about which a mention was made in the draft Fifth Five Year Plan relates to the levy of fees at the secondary and university stages. In my opinion, this is very important. We have to consider this point in relation to the fact that equality of economic opportunity is extremely important. We have also to take into account the ability of the people to pay fees. We should also note that the institutions of secondary and higher, education in this country cater largely to those sections of the community who are in a position to pay much more than what they are doing at the moment. It means that money for such purposes is being raised by other means. I do agree that greater facilities have to be provided in terms of accommodation and books and other essentials for the student community. But those who are in a position to pay have to pay. May be we have to strike a balance somewhere. But we cannot get away from the basic fact that

out of nothing, nothing will come. We will have to generate resources on the traditional pattern, and make the beneficiaries of the system pay more according to their ability. It we can find out some method of raising additional resources, through local planning and local efforts we can relieve the inevitable strain on our financial resources at the national level for a long time to come and then the finances will look up.

Finally, I would like to make a point in relation to functional literacy. In relation to non-formal education and adult education, resources are spent under a variety of programmes such as family planning which may not be coordinated with the programmes of education. What I want to say in this regard is that it is really a question of pooling of resources. We all know that the education of girls plays a very important role in relation to the acceptance of family planning programmes. This is very relevant in respect of a particular age group. This is not to say that family planning programmes will have a cut in their resources. What is required is that family planning programmes should be so integrated with the educational programmes that we are able to achieve the desired results. I think that this is an extremely sensible proposition and that we should make a combined effort in relation to our basic objective, namely, improvement in the quality of human resources.

The other programme which has emerged in the discussion is the training of teachers. The magnitude of the problem is very large ; and it is not desirable that it should be done entirely by the Centre. Under your guidance, we may be able to give certain definite indications as to what are the important jobs to be done. But I would like to make it very clear that it is not proper to transfer all the responsibility to the Central Government which is obviously not equal to it.

may I suggest the following guidelines for action in the third year, of the Fifth Plan ? Let us see to what extent we shall be able to get larger allocations in the plan. But it is obviously not desirable to depend on this source alone. Efforts will have

to be made to mobilize resources to the utmost, and to restrict expenditure on non-essential items. We must raise local resources for local uses. We must also ensure that the money allotted is used to the maximum advantage possible. It is not A larger investment but the increased effectiveness of the expenditure incurred and its maximum utilisation that should be our immediate objective.