APPENDIX L- MEMORANDUM SUBMITTED BY THE GOVERNMENT OF BIHAR TO CONSIDER DIFFICULTIES CREATED BY DIMINUTION OF PRIVATE ENDOWMENTS, DONATIONS AND SUBSCRIPTIONS TO NON-GOVERNMENTAL EDUCATIONAL INSTITUTIONS
The question of financing non-Government educational institutions has assumed considerable urgency on account of the gradual diminution of private endowments, donations, subscriptions, etc., to such institutions in recent years. All over the country, and particularly in nonindustrial regions, several factors have operated towards the disappearance of these sources of income to educational and cultural
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institutions. The abolition of land-lordism, the change in the status of feudal princes, the inability of local officers to reward such charitable acts through recommendations for the conferment of titles, have all resulted in a virtual withdrawal of public financial support to such institutions and particulary to colleges. At the same time the number of institutions that are now springing up for providing education of various standards is ever on the increase. Generally, these institutions are established with lean finances that are exhausted within a year or two of their establishment. Thereafter Government's help is sought on the ground that the very continuance of such institution is imperilled. The obvious reply that the State Government can give under such circumstances is that an institution which cannot subsist on its own finances has no right to continue, but the fact that the closing of such institution would affect a large number of students cannot be altogether ignored. The multiplication of institutions is not merely the result of the whim of a few individuals keen to gain importance by starting new instituions. It is actually the direct result of pressure for more and more education in the country, a factor which cannot be ignored by the community as a whole.
2. Government's finances, both at the State ends and at the centre, are limited. The cost of the maintenance of institutions is going up. In these circumstances the problem of the financing of such institutions is one to which all educationists must give their serious attention at this formative stage of the educational expansion in India. Some methods have to be devised for ensuring the availability of funds for educational purposes from different sections of the community on which the burden should now fall with the disappearance of the landlords and the change in the status of the feudal princes. The matter is placed before the Central Advisory Board of Education for suggesting some methods for the consideration not only of the various Governments but also of non-official bodies through which such sections of the community can be tapped. One of the suggestions made in this connection is that some representative commercial bodies may be persuaded to put on systematic and organised manner the age old custom in practically all the markets, big or small, in the country, of realising a small levy for charitable purposes oil whole-sale transactions. This levy goes by different names in different parts of the country (e,g., Dharmada, Katauti, etc.,). At present the amounts realised generally remain with the individual merchants who utilise these funds in setting up Dharmshalas, digging wells and occasionally making contribution to educational and other institutions. The accounts are kept only individually and there is hardly any check up. If this source were fully utilised the community would have provision for recurring funds in practically every month and quite a few of the private institutions could be financed.
3. It is understood that recently in Syria some of the Elementary Schools have been financed by means of such levies in the local markets. In India, however, there is no question of the imposition of a fresh levy. )Inch of the desired objective might be achieved only with the systematization and Organisation of this un- official levy. Perhaps a Committee set up in every market by the merchants themselves could serve this purpose. The community, of course, can claim for a proper organisation of these funds as the realizations are made from the ordinary Consumers and are not deducted from the profits of the merchants.
4. The problem is as to who should take the initiative in making this arrangement. If Government have to step in, the age old custom would be reduced to the position of income-tax; it will lose its voluntary character and the ultimate results may be quite contrary to what are desired. If the Chambers of Commerce or similar institutions could be persuaded to take interest in the suggestion there might be some success.
5. This is only one suggestion that has been made to meet this crisis. The Board should, however, consider this problem in all its aspects and evolve any other Practicable methods for the consideration of the Governments as well as the Community.
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