SI.14 Central Grants to States for Education.The Central grants to States under the awards of the Finance Commission are not discussed here because they are not earmarked for education. It is only the developmental grants given Under the five-year plans that are so ear- marked and the data about these are given in Table SI.3.
SI.15 The Centrally Sponsored Sector. These grants can be sub- divided into two sub-categories: (1) grants-in-aid for schemes included in the State plans; and (2) grants-in-aid under the Centrally sponsored sector. We do not propose to discuss the first category which forms a part of the Central assistance to the State plans as a whole and whose quantum and character vary from plan to plan. We are particularly concerned with the second category, namely, grants-in-aid under the Centrally sponsored sector. It will be recalled that we have recommended a large expansion in the Centrally sponsored sector and that the following are some of the schemes to which we have recommended aid under this Sector:
(1) Training of teachers;
(2) Introduction of vocational education at the secondary stage;
(3) Development of the State Institutes of Education;
(4) Production of literature for children and teachers; and
(5) Development of quality institutions at the school stage.
Other programmes of a similar type which can be assisted have been indicated in the appropriate context in the different parts of the Report.
SI.16 Some problems relating to the administration of the Centrally sponsored sector need attention. In this context, we make the following recommendations:
(1) In selecting programmes to be included in Centrally sponsored sector the State Governments should be consulted.
7
908 EDUCATION AND NATIONAL DEVELOPMENT SI.16
TABLE SI.3. EXPENDITURE ON EDUCATION (REVENUE ACCOUNT) FROM CENTRAL
AND STATE GOVERNMENT FUNDS (1951-52 to 1965-66) (Rs. in millions)
Revenue expenditure on education Combined Grant-in-
revenue aid from
expendi- Centre to
Centre States Total ture of States
Year & Union (Centre & the Centre, (Col. 4
Territories States) States minus
including & Union Col. 5)
grants Territories
1 2 3 4 5 6
1951-52 40.8 602.8 643.6 641.3 2.3
1952-53 33.2 688.0 721.2 714.4 6.8
1953-54 43.0 757.5 800.5 785.8 14.7
1954-55* 24.3 859.6 883.9 899.7 -15.8
1955-56 142.3 1,037.9 1,180.2 1,104.3 75.9
1956-57 194.4 1,142.4 1,336.8 1,134.2 202.6
1957-58 209.8 1,304.4 1,514.2 1,477.6 36.6
1958-59 278.9 1,472.4 1,751.3 1,634.7 116.6
1959-60 366.9 1,709.0 2,075.9 1,897.0 178.9
1960-61 437.9 1,954.1 2,392.0 2,152.2 239.8
1961-62 513.3 2,344.8 2,858.1 2,604.0 254.1
1962-63 500.2 2,505.9 3,006.1 2,788.3 217.8
1963-64 570.8 2,833.3 3,404.1 3,138.1 266.0
1964-65
(Revised
Estimates) 741.0 3,293.6 4,034.6 3,693.3 341.3
1965-66
(Budget
Estimates) 880.4 3,759.8 4,640.2 4,268.2 372.0
Source. Indian Economic Statistics, Part II, Public Finance, issued by the Ministry of Finance.
Note. 1. The figures relate to expenditure on education through the Ministry of Education only and exclude the expenditure on education incurred by other Ministries and Departments.
2. *The figures for 1954-55 seem to be wrong. As the details are not available, these could not be reconciled.
(2) One criterion for including programmes in the Central sector is that they should be of crucial importance and national in character. Programmes which need the adoption of a common policy in all parts of the country should preferably be included in the Centrally sponsored sector.
SI.16 GRANT-IN-AID 909
(3) The local needs of the States vary considerably. it would, therefore, be desirable to include, in the Centrally sponsored sector, some programmes which may vary from State to State. One method of doing so would be to divide the total funds available in the Centrally sponsored sector into two parts, about half of them being allocated to national programmes which are referred to above. The other half should be made available to the State Governments, on some equitable basis, and they should be free, with the approval of the Government of India, to use them for any scheme which is significant and urgent in their local situation.
(4) The assistance to Centrally sponsored schemes generally continues for the plan period. Very often it is not possible to start new Centrally sponsored schemes in the beginning of the plan; and if they are started late, the State Governments are unwilling to accept them because they would not get full financial assistance. It would, therefore, be desirable to make Central assistance for Centrally sponsored schemes available to the States, on a five-year basis rather than on the basis of a plan period. For some important schemes in the Centrally sponsored sector, assistance may even be continued for a longer period, say, 10 years.