APPENDIX L- FINANCIAL RESOURCES FOR EDUCATIONAL DEVELOPMENT-INVESTIGATION- PROPOSAL FOR APPOINTMENT OF A COMMITTEE.
The following note has been received from the Government of Central Provinces and Berar, who have suggested the item for consideration.
"There is no lack of will which hampers educational progress. The two recognised limitations of educational development are the want of personnel and of funds. The Central Advisory Board, has considered the problems relating to the acceleration of the supply of personnel and its training. The other limitation viz. the financial, needs examination. The great merit of the Sargent report is that it has indicated in broad terms a rough approximation of the cost of educational development and given a general indication how the funds can be found. In particular regard to the cost for the construction of buildings the Report suggests that the funds should be found by a system of long term loans. Educational development has now commenced in every province and there is a natural anxiety everywhere to ensure financial resources commensurate with the requirements of planned educational development. This is particularly so in regard to the enormous funds required for constructing buildings for educational institutions. Time is,now ripe for reviewing the existing financial means and considering how they must be supplemented adequately lest educational development should starve for want of funds. For instance, it is essential to indicate in detail how the proposal relating to the system of loans for finding funds for educational buildings can work. There is an opinion that the State loans should not be raised for nonproductive purposes and this school of thought has to be considered. The problems is extremely intricate and difficult but it cannot be shelved. With the advice of financial experts, men of vision and educationists, it is possible to reach some valuable conclusions and the task is worthy of an endeavour."
2. In this connexion, it may be mentioned that the Central Advisory Board of Education at their annual meeting held in January, 1947, while considering the question of the adoption by all Provincial Governments of scales of pay and conditions of service recommended by the Board, made a suggestion that the financial implications of the question should be examined carefully by the Government of India who should also consider if it was desirable-to appoint a Committee to, investigate whether any special readjustment was necessary in respect of financial assistance from Central Government to the Provincial Governments. (Vide pars 11 on page 13 of printed proceedings of the 13th meeting.) The Government of India have In the first instance addressed the Provincial Governments for the collection of Information considered necessary in connection with the investigation of the issue. As soon as the information is received the question will be examined further.
3. The existing position in regard to the financial assistance from the Centre to the Provincial Governments for the implementation of their educational development programme is that in respect of the educational schemes approved by the Government of India for execution in the year 1946-47, preliminary to the commencement of the 5-years period 1947-52, the Central Government have undertaken to meet all expenditure incurred by the Provincial Governments on their execution during that year. As for the schemes to be implemented during subsequent years of the quinquennial period, the Government of India have agreed to give block grants for the execution of the entire approved provincial development programme relating to all heads subject to the limit of the actual expenditure incurred within that period. These grants will be deemed to have been distributed over the different main heads in the proportion which the estimated development expenditure under each head bears-to the total of all the development expenditure under the 5 year plan of the province. Thus, if the expenditure on education in an approved Provincial Plan-were 15 % of the total expenditure on all subjects, then 15% of the Central grant will have to be regarded as allotted to Education.
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