RESOURCES FOR EDUCATION
 

14.1 Present Status

The following is the present status of funding in India:

- Expenditure on education as a percentage of GNP is 3.7 (10,000 crores approximately).

- Government source accounts for 80% of funding, balance 20% being shared between private sources (15%) and local bodies (5%).

- Non-Plan expenditure is of the order of 87% of the total expenditure.

- Over the years, total Central and State Plan expenditure has decreased - from 7.9% during the First Plan to 2.6% in Sixth Plan.

- While over the years share of Central Government has increased from 25% to 37% on the Plan side, it has come down from 16% to 6% on the non-Plan side.

- Intra-sectoral resource allocation over the years presents the following picture:

                                              First Plan     Seventh Plan
                                              (Percentage)   (Percentage)
                       Elementary               56             29                  
        
                       Secondary                13             16
        
                       University and 
        
                       General                  18             44
        
                       Technical                13             11
        
                                                 

14.2 Seventh Plan, perspective up to 2000 AD and Strategy

Provision of resources for Education has to take into account the following perspective already presented in Seventh Plan:

- Elimination of illiteracy;

- Universalisation of Elementary Education;

- Continuing and recurrent education;

- Vocationalisation of secondary education;

- Use of modern communication technology;

- Consolidation and quality improvement in higher and technical education.

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14.3 Resources as envisaged in NPE, 1986

NPE 1986 calls for meaningful partnership between the Centre and States, particularly in the context of Education having become a concurrent subject with the Constitutional amendment of 1976. Of course, the policy recommends mobilisation of resources through public contribution, donations, raising fees at higher levels of education and bringing about internal efficiencies. But it clearly also says that largely Government with have to provide the funds. Further, it calls for investment in Education from Eighth Five Year Plan onwards at a uniform level of over 6% of the National Income (above Rs. 14,400 crores per annum relative to 1986-87).

14.4 Ninth Finance Commission

A statement has been submitted to the Ninth Finance Commission by the Department of Education projecting the fund requirements of Education Sector. (States have also been requested to present their requirements for Education before the Commission). A Committee of Central Advisory Board of Education has also been set up to look into this matter in the context of the Ninth Finance Commission. The statement the requirements for the Central Sector as follows:

        
        
                        For 1989-90         For 1990-1995
                                                     (Rs. in crores)
        
                 Plan                      1870            5700
                 Non-Plan                   652            3000
        
                                              

(The follow-up commitments of State Governments during VIII Plan have also been indicated in the statement mentioned above.)

14.5Resource Crunch and NPE

For the current year the Central Education Plan funds have been provided only at last year's level - Rs.800 crores. Unlike the earlier Education Policies, the present policy has been backed by a detailed Programme of Action approved by the Parliament. Under the Programme of Action, achievement of specific physical targets before stipulated dead-lines has been envisaged like for universalisation of elementary education, vocationalisation of secondary education, removal of illiteracy, etc. These time-bound physical targets will not be capable of achievement unless adequate funds are provided to the centre and the States through Plan budget and based on the recommendation of the Finance Commission. During the year 1988-89, physical targets have had to be scaled down due to limited resources. By implication, dead-lines will have to be pushed further into the future.

It is necessary that adequate funds for education should be provided if India is not to be left behind. To quote Bruce Nussbaum, et all in Business Week, Sept. 19, 1988, "The evidence is overwhelming that people, not machines are the driving force behind economic growth".

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