TABLE 19.3. INDIRECT EXPENDITURE AT SCHOOL AND UNIVERSITY STAGES
1950-51 1965-66
Amount Percentage Amount Percentage
(Rs.in 000's) of total (Rs. in 000's) of total
expenditure expenditure
School Education
1. Direction and
Inspection 27,364 2.4 114,009 1.9
2. Buildings 39,708 3.5 133,211 2.2
3. Scholarships 24,705 2.2 210,017 3.5
4. Hostels 5,479 0.5 19,093 0.3
5. Miscellaneous 26,964 2.4 104,759 1.7
TOTAL 124,220 10.9 581,089 9.7
Higher Education
1. Direction and
Inspection ... ... .... ...
2. Buildings 59,562 5.2 532,844 8.9
3. Scholarships 9,751 0.9 210,018 3.5
4. Hostels 12,785 1.1 76,370 1.3
5. Miscellaneous 26,964 2.4 104,759 1.7
TOTAL 109,062 9.5 923,991 15.4
N.B. (1) The expenditure on buildings has been divided, on the basis of general trends noticed, as 40:60 in 1950- 51 and 20:80 in 1965-66.
(2) The break-up of the expenditure on scholarships for 1950-51 (actuals) is available. That for 1965-66 is an estimate made in the Secretariat of the Commission on the basis of present trends.
(3) The expenditure on hostels is largely at the university stage. It was divided, on the basis of general trends noticed, as 30:70 in 1950-51 and 20:80 in 1965-66.
(4) The miscellaneous expenditure was divided, on an ad hoe basis, in the proportion of 50:50.
(5) Totals do not tally due to rounding.
qualitative improvement of school education. The growth of educa- tional expenditure in Japan as seen in Table 19.5, will show this clearly.
19.11 It will be seen that, in 1885, the expenditure on elementary education in Japan was as high as 84.3 per cent of the total. It has now come down to 42.4 per cent. (In Japan, the duration of the elementary course of education is six years as against seven years recommended by us.) The expenditure on secondary education, which was
864 EDUCATION AND NATIONAL DEVELOPMENT
TABLE 19.4. EDUCATIONAL EXPENDITURE BY LEVEL
1950-51 1965-66
1. First Level, i.e. pre-primary, lower
primary and higher primary schools 38.7 32.5
2. Second Level, i.e. secondary, special
and vocational schools and Board of
Secondary Education 25.9 25.3
3. Indirect expenditure on school education 10.9 9.7
TOTAL 75.5 67.4
4. Third Level, i.e. Universities, research
institutions, and colleges of general,
special and professional education 15.0 17.2
5. Indirect expenditure on higher education 9.5 15.4
TOTAL (UNIVERSITY) 24.5 32.6
100.0 100.0
N.B. Totals do not tally due to rounding.
TABLE 19.5. EDUCATIONAL EXPENDITURE IN JAPAN (1885-1960)
Year Distribution of expenditure by level of education Percentage GNP
(percentage) of GNP in million
spent on yen
Element- Second- Higher Teacher Total education
ary ary education training
education education
I-VI VII-XII XIII and
above
1885 84.3 2.8 8.3 4.6 100.0 1.8 612
1890 76.9 3.1 10.9 9.1 100.0 1.0 924
1900 67.6 16.5 7.0 8.9 100.0 2.1 1,997
1910 67.4 16.7 10.0 5.9 100.0 3.0 2,888
1920 67.6 17.6 10.9 3.9 100.0 2.5 11,845
1935 61.9 18.7 16.9 2.5 100.0 3.3 15,203
1940 55.7 21.8 20.1 2.4 100.0 2.1 32,183
1950 41.8 46.2 12.0 .. 100.0 4.8 3,381,500
1960 42.4 44.5 13.1 .. 100.0 5.2 11,821,700
Source. Japan's Growth and Education, Ministry of Education, Japan, 1963, Tables 10 and
14.
19.13 EDUCATIONAL FINANCE 865
only 2.8 per cent in 1885, has now risen to 42.5 per cent, (The course of secondary education in Japan extends over six years, for the first three years of which education is compulsory). In higher education, the expenditure has been steadily growing and risen from 8.3 per cent in 1885 to 13.1 per cent in 1960.
19.12 Some idea of the manner in which expenditure is distributed over the different levels of education in other countries can be had from Table 19.6.
TABLE 19.6. PERCENTAGE DISTRIBUTION OF RECURRING EXPENDITURE ON
EDUCATION BY LEVEL AND TYPE OF EDUCATION, 1961
Central Pre- Second level Other
adminis- primary Third types Total
Country tration and 1st Total General Vocational level of
level and education
teacher
training
1 2 3 4 5 6 7 8 9
Brazil 10.1 33.4 19.5 .. .. 20.0 17.0 100.0
France 1.9 48.3 29.2 18.0 11.2(a) 8.3 12.3 100.0
Germany
(F.R.) 1.5 48.1(b) 35.8 23.1 12.7(a) 13.2 1.4 100.0
Ghana 13.2 26.7 33.1 18.7 14.4 17.2 9.8 100.0
Nigeria 9.4 53.8 29.0 12.6 16.4 5.1 2.7 100.0
Pakistan 5.5 42.9 23.8 19.1 4.7 19.6 8.2 100.0
Turkey ... 61.3 32.4 13.4 19.0 1.4 4.9 100.0
UK (England
& Wales) 4.1 27.1 38.8 31.5 7.3(a) 14.1 15.9 100.0
USA ... 72.4(c) ..(d) ... ... 27.6 ... 100.0
USSR 0.5 71.2(c) ..(d) ... ... 13.3 15.0 100.0
Yugos-
lavia (e) 4.5 58.3 19.3 ... ... 16.1 1.8 100.0
Source. Compiled by the Commission's Study Team from documents available in the UNESCO Secretariat, Paris.
(a) Excludes expenditure on teacher training.
(b) Includes expenditure on special education.
(c) Includes expenditure on second level of education.
(d) Included under pre-school and first level of education.
(e) 1960.
19.13 The Indian picture in this context can be seen in the statistics given in Table 19.7.
866 EDUCATION AND NATIONAL DEVELOPMENT 19.14
19.13 EDUCATIONAL FINANCE 867
868 EDUCATION AND NATIONAL DEVELOPMENT
It will be seen that before Independence the position remained more or less stationary in India for a period of about sixty years-the direct expenditure on school education decreasing only from 71.1 per cent in 1881-82 to 67.8 per cent in 1946-47 and that on higher education rising only from 9.3 per cent to 14.8 per cent during the same period. The position, however, changed radically with the attainment of independence. Steps began to be taken for industrialization and hence greater expenditure was incurred on higher education, science and scientific research, technical and technological education, etc. By 1965-66, therefore, expenditure on higher education increased considerably. As will be seen from the data given in paragraph 19.09 earlier, the present position is that about one-third of the total expenditure is devoted to the first level of education; another one-third is devoted to the second level and to the indirect expenditure-on school education; and the remaining one- third is devoted to higher education.
SOURCES OF EDUCATIONAL EXPENDITURE (1950-65) 19.14 We shall now proceed to examine the sources of educational expenditure during the first three plans. Due to various historical reasons, a multi-source finance system has grown in the country and education is now financed by the Central Government, State Governments and local authorities, and through fees and 'other' sources which include endowments, donations and other, voluntary contributions from the public. This has helped to raise more resources in the aggregate than would otherwise have been possible and has also shown a certain resilience in times of difficulties by setting off, to some extent, the shortfalls in one source by increase in others. Table 19.8 shows how the contribution of each source has increased during the first three plans.
It will be seen that the largest increase has taken place in the expenditure from government funds (555 per cent or an average annual growth of 13.3 per cent) this is only to be expected-and they now contribute 71.2 per cent of the total expenditure as against 57.1 per cent in 1950-51. Consequently, the contribution of all other sources has proportionately declined, although it has increased in absolute terms. The next important source is fees whose contribution has in- creased by 294 per cent (or 9.6 per cent per year); it now accounts for 15.3 per cent of the total educational expenditure. Then come other sources whose contribution has increased by 225 per cent (or 8.1 per cent per year) and which now bear only 7.2 per cent of the total
19.14 EDUCATIONAL FINANCE 869
TABLE 19.8. EDUCATIONAL EXPENDITURE IN INDIA BY SOURCES (1950-51 to
1965-66)
Source 1950-51 1955-56 1960-61 1965-66
(estimated)
1. Government Funds
(i) Total expenditure
(Rs. in 000's) 652,678 1,172,049 2,340,914 4,271,856
(ii) Index of growth 100 179 359 655
(iii) Percentage of
total expenditure
on education 57.1 61.8 68.0 71.2
2. Local Authorities' Funds
(i) Total expenditure
(Rs. in 000's) 124,987 163,548 224,914 378,031
(ii) Index of growth 100 131 180 302
(iii) Percentage of
total expenditure on
education 10.9 8.6 6.5 6.3
3. Fees
(i) Total expenditure
(Rs. in 000's) 233,272 379,033 590,258 918,077
(ii) Index of growth 100 162 253 394
(iii) Percentage of
total expenditure on
education 20.4 20.0 17.1 15.3
4. Other Sources
(i) Total expenditure
(Rs. in 000's) 132,885 181,980 287,715 432,036
(ii) Index of growth 100 137 217 325
(iii) Percentage of
total expenditure on
education 11.6 9.6 8.4 7.2
5. Average Annual Rate of Growth
First Second Third All
Three
Plan Plan Plan Plans
(i) Government funds 12.4 14.8 12.8 13.3
(ii) Local authorities'
funds 5.5 6.6 10.9 7.3
(iii) Fees 10.3 9.2 9.2 9.6
(iv) Other sources 6.5 9.6 8.5 8.1
Source. Ministry of Education, Form A.
expenditure. The local authorities whose resources are inelastic, particularly in rural areas, account for 6.3 per cent of the total expenditure only and they also show the lowest increase in contribution--202 per cent (or 7.3 per cent per year).
870 EDUCATION AND NATIONAL DEVELOPMENT 19.15
SOURCES OF EDUCATIONAL EXPENDITURE (1965-85) 19.15 What would be the probable developments relating to sources of educational expenditure in the next 20 years ? It win be seen from the above that the responsibility for the financing of education at all stages is falling increasingly on government funds (Central and State). This trend will increase in the future. The total revenue from fees win be considerably reduced when, as we have recommended elsewhere,241 education up to the end of the lower secondary stage is made tuition-free and a much larger provision of free-studentships is made in higher secondary and university education to meet the needs of the young persons from the under-privileged sections of society who are now coming into the universities and colleges. Similarly, the income from other sources would not rise in proportion to the increase in total educational expenditure. The local authorities also may not be able to provide more than a very small percentage of the total expenditure, even after they have made the best effort to raise their contribution. Taking an overall view of the situation, therefore, it appears that the funds of the Central and State Governments would have to bear about 90 per cent (or even more) of the total educational expenditure.
19.16 While it is true that most of the responsibility for the support of education should thus be squarely placed on governmental funds, a total centralization of all financial responsibility for education would also not be desirable, because it deprives the agencies at the school and local levels of initiative in the matter. Even though the resources thus raised may not be large, the provision of administrative arrangements under which such initiative can exist and is even encouraged is of very great educational significance. It will also stimulate parental and local interest in education and help to raise standards. We, therefore, recommend that attempts should continue to be made to raise as much contribution as possible from local communities, voluntary organiza- tions and local authorities to support educational development.