EXPENDITURE ON EDUCATION
 DEPARTMENTS UNDER CAPITAL
 ACCOUNT
 

Expenditure in capital account including loans and advances as shown under statement III in Annexure covering a period starting from 1974-75 for the States and 1981-82 onwards for the Centre. In view of the existence of a large educational infrastructure in the country the expenditure under capital account seems to be very low. Some of the reasons can be as under:-

i) According to the accounting procedure the entire grants-in-aid, including grants for capital works is booked under revenue account and not under capital account.

ii) Village Panchayats donate land for construction of school buildings and villagers provide voluntary labour and locally available construction material reducing pressure on the capital budget of government.

iii) In most of the states schools and colleges are started initially by private individuals/organisations, but are granted aid for meeting the salary component of teachers after a specific period. Thus, Government saves on the cost of land and building.

iv) Expenditure on construction activity is often shown under the budget heads of other departments.

12