RESOURCES
 

Resources flow into the Education Sector from three main sources:

(i) Plan resources from the Government;

(ii) Non-Plan resources from the Government; and

(iii) Private or non-Government resources.

Private or non-Government resources are in the form of fees from the students, donation, endowments, in addition to the expenditure in- curred by the individual or household on the education of children such as on books, transport, hostels uniform etc. Plan and Non-Plan resources come from the Government.

The proportion of the public expenditure on education has increased from 68% in 1950-51 to 85% at present. The expenditure consists of 12% contribution from fees and 3% from endowments and other sources.

The total Government expenditure on education (both Plan and Non-Plan) is likely to reach a level of Rs.6000 or more by the end of Sixth Plan period, with an average annual growth rate of 9-10%. The non-Plan expenditure alone constitutes 87% of the total expenditure, leaving only 13% plan expenditure to be used for further development. Accord- ing to the available information, the annual Plan expenditure on education is likely to reach to the level of Rs.800 and odd crores by the end of the Sixth Plan period, which has the total plan outlay of the order of Rs.2524/- crores.

The Working Groups set up by the Planning Commission for various sub- sectors of education, have assessed the total seventh plan require- ments of the education sector of the magnitude of Rs.15,000 crores or so, which is nearly six times of the Sixth Plan approved outlay for education. While there is a case of high collection of resources for education sector, especially if its is effectively linked with econom- ic and national development of the country, still it would be diffi- cult to meet the growing financial requirements of this sector from the resources of Government alone. Many suggestions have been made by various committees and individuals, but no effective steps have yet been taken by the Centre and the States, to augment non-governmental resources although some measure have been adopted by a few states such as levying education cess, etc. raising of examination fee etc. The Working Group on Resources for Education Sector in the Seventh Plan, was set up by the Planning Commission to specifically consider the suggestions. It has made several concrete suggestions for the consid- eration and adoption by States, according to the local needs.

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Suggested Measures

(i) Determined efforts should be made for economizing and optimally utilising the resources allocated for education. A high level commit- tee may be set up in States for making survey for optimal utilisation of existing infrastructure and resources.

The structure and pattern of utilisation of Plan and non-Plan funds should be reviewed and reoriented to meet the increasing demands of educational development. All vacancies of teachers in the existing institutions should be filled from non-plan funds and not made up from plan funds. Non-Plan funds should also be utilised as far as possible for improvement of classes, laboratories, hostels and libraries etc. One of the most important steps however would be the redeployment of teachers so that their posting are rationalised as often emphasised in the recommendations of Central Advisory Board of Education and various other committees' meetings. The creation of posts of teachers and their postings should be reviewed from the point of view of needs according to norms rather than an "employment promotion" programme. The intake capacity of teacher training institutions should be strict- ly regulated to reduce the "surplus trained teachers", which puts pressure for the creation of the posts and their filling up irrespec- tive of actual needs.

(ii) Cost-saving devices may be adopted to reduce the unit cost of various programmes through alternative strategies which may also help in the successful implementation of the programmes. For example now that majority of the non-attending children and adult illiterates are proposed to be covered through various non-formal, informal and part- time education programmes, it is desirable to intensively utilise the teachers engaged for these programmes. Also it is suggested that a second teacher in single teacher schools or additional teachers in the existing multi-teacher school on the basis of teacher-pupil ratio, may be appointed either part-time or on reduced fixed salary as a helper to the teacher with a view to reduce the bulging salary budget of elementary schools. It should be possible to adopt cheaper methods of construction, utilising local resources for school buildings and also modify our plans for hostels and other educational institutions in such a way as to achieve savings in costs without sacrificing the facility as such.

(iii) As indicated earlier, income from tuition fees is now a dwin- dling source. while primary education is free in all States, education is free upto 10th Class in few other States, particularly in respect of girls. The structure of fees charged in highly technical and pro- fessional institutions. The time has come when the fee structure has to be reviewed and hard decisions are taken from the point of view of raising the fees at all stages of education so that the contribution from fees might develop to at least 20% of the expenditure for educa- tion in the States, (as was the case in 1950-51). While it may be unacceptable idea to charge any tuition fees in the primary stage, it is highly desirable that a least 50% increase should be made in tui- tion fees charged in secondary schools and

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colleges for general education. So far as technical and professional colleges are concerned, there should be no two opinions about the need to make such institutions self-financing and all subsidies in the form of tuition fees should be removed (with appropriate scholarships for the minorities and the needy). International studies have revealed that subsidizing technical education institutions may also be assisted in getting loans from Banks and other financial institutions, even if they would involve changes in the rules governing such loans of Fi- nance. For administering the scheme of loans, the setting up of an Education Development Loan Corporation may also be considered.

(iv) Besides the tuition fee, specific fees for specific purposes such as library fee, laboratories fee, games fee, magazine fee, building fee etc. are also prescribed by Education Departments in almost all the States. This fee income is kept separately to be utilised by the Head of the institutions for the purpose for which it is charged and this is for the programme of quality improvement. In this connection, it is proposed that the head of the institutions should be given complete charge of these types of fees in institutions beyond the compulsory stage. The income thus received from these fees should be kept separately to be merged in `school fund', which may be created in all institutions above the compulsory stage. To this fund can also be added voluntary donations and contributions from private bodies and managements for specific development purposes. The institutions should also be left free to charge higher tuition fees for those who can afford beyond even the minimum prescribed rates and also charge any other type of fund that the institutions deemed necessary for its development. The contributions received by the institutions from the specific fee donations and other charges may be merged into the pro- posed `School Fund', which should in no way be linked with admissions and examinations. It should be utilised only for improvement programs and not for the payment of teachers salaries and allowances. This should be managed by a committee consisting of parents, teachers, and students with the head of the Institutions as its chairman.

(v) States should activise the Community Participation at the local level. the Communities may be actively involved in the implementation of the programmes of universalisation of elementary education and adult education and should be made to contribute either in cash or in kind in the form of land and equipment. The successful implementation of this programme in Tamil Nadu may be adopted as on of the models in this regard for contribution to equipment and facilities. Apart from the monetary contributions by public towards expenditure on education incurred on their children, the community will be motivated and com- mittee to the programmes of education, and this will help in improving the enrolment and retention rates, necessary for the successful imple- mentation of the strategic programmes of universalisation of Elemen- tary Education and Adult Education.

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The role played by the local community in establishing new institu- tions particularly at the Secondary and the Degree levels is well recognised in the country. But the burden of their maintenance and development falls ultimately on the Government, while these institu- tions are taken on grants-in-aid list. In encouraging private effort the future finance implications have to be kept in view the roles of taking the institutions on the grants-in-aid list should be rationa- lised and made stringent and difficult, so that the community continue to play a significant role in providing necessary funds required for the improvements and development of these institutions.

(vi) State Governments may also encourage the levy of special educa- tion cess and increase in the rates of such cess on all urban property owners, and on other selected items in rural areas such as on market transactions. It may be suggested that at least 2% of the rental value of the urban housing property should be taxed and its proceeds kept separately for the educational development of the corresponding area. Besides, surcharge may be levied on other items like entertainment, motor vehicles, electricity etc. for the improvement of educational institutions.

Some cess should be levied on the agriculture produce marketed at the time of procurement drive. In fact such cess could be thought of in regard to all levy price transactions, such as sugar, cement etc. which are subsidised today and could bear a small increase for the benefit of the community. Similarly, the industries (both large-scale and small-scale, including cottage) should also contribute in the form of the proposed educational cess for the development of the education- al institutions in the areas in which they are located. Cent percent surcharge on registration and stamps duties on transfers of all properties for the purpose of utilsing the same to finance education at the State level can be thought of. If necessary, the Income-Tax Laws, operating in the States and the country may have to be modified for the implementation of the proposed measures.

(vii) The possibility of getting loans for the school buildings from Banks and other financial institutions (including loans from foreign organisations) should be explored more intensify. Concerned authori- ties viz. Ministry of Finance and Reserve Bank of India may have to be approached for necessary changes in the rules and procedures required for getting these loans.

(viii) The scheme of loan scholarship for meritorious but poor stu- dents may be reviewed and operated through the Banking Institutions at the local level. A revolving fund of Rs.500 crores may be created and disbursed to the States on the basis of their requirements. The amount can be increased after the scheme is successfully operated with this financial arrangements, the problem of recovery from which the old scheme suffered might be mitigated.

(ix) Since Education sector produces human resources required by other development sectors, it is desirable that the user sectors should pay for the services rendered by the education sector. Manpower cess may be levied on the industries requiring skilled manpower personnel. Public sector undertakings and private industries

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should in charge of their social responsibilities to assist the pro- gramme of Adult Education for their workers and in the provision of Elementary Education for the children of their employees.

(x) Selected programmes of rural development for removal of poverty and unemployment such as NREP, IRDP and ICDS should be closely linked with the education development programmes, area wise. These sectors should set apart a proportion of their budget for the programme of educational development, particularly at the elementary stage and adult education. Even for the successful implementation of the rural development programmes like NREP, IRDP etc. educational programmes, which aim at creating awareness and literacy would be very helpful and sometimes a precondition.

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