SUMMARY STATEMENT OF FUNDS NEEDED FOR PRIORITY PROGRAMMES AND COMMITMENTS.

Normative approach in assessing receipts and expenditure on Revenue account of the States and the Centre

8.1.0 The following are the norms that could be followed in assessing the receipts and expenditure on revenue account of the States:

- Educational backwardness, particularly as reflected in female literacy rates;

- per capita educational expenditure (Plan and Non-Plan together);

- Per capita Non-Plan expenditure in education;

- Primary school enrolment per lakh of population;

- Percentage of primary schools having Pucca/ semi Pucca buildings;

- Percentage of trained teachers, particularly qualified Science and Mathematics teachers.

- Percentage of schools having minimum essential equipment.

8.2.0 It is desirable that the norms have a bearing on distributive and qualitative aspects.

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8.3.1 Education is in the Social service sector. There are policy commitments in terms of development of have-nots and the deprived, particularly the Scheduled Castes and Scheduled Tribes. Farther, basically, there is the Constitutional directive for free education for all children upto the age of14 years. In the circumstances the scope for revenue receipts is rather limited, leave alone the question of stipulating norms for receipts (However, norms could be set as regards receipts from Higher Education sector).

8.3.2 In the Central sector of education there are virtually no revenue receipts.

8.3.3 The norms for revenue expenditure of the Central Government would, in turn, be dependent upon the above mentioned norms concerning the States. This is particularly so after Education was brought under the Concurrent list. The Central Government have to work in partnership with the States and expend resources for the educational development of the States.

8.3.4 Expenditure, whether it be at the Central or State levels is a function of the following basic factors :

i) Provision of teaching staff;

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ii) Provision of buildings;

iii) Provision of equipment;

iv) Levels of research oriented activities;

v) Subsidies (direct like scholarships, concessional supplies of paper for textbook, production etc. or indirect, principally non-collection of user fee.)

8.3.5 Already norms do exist in the matter of provision of teachers, buildings and equipment. Such norm have been stipulated by the Central Government, State Governments as well as the UGC.

8.3.6 Scholarships are meant for encouraging the poor and the talented.

8.3.7 Paper supplied on concessional basis for textbook production involves a subsidy of Rs. 3,000 per tonne. There is a Non-Plan budget allocation of Rs. 240 crores for the purpose. This direct subsidy also subserves the purpose of bringing down the cost of education particularly at the elementary level

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where universalisation of education is sought to be achieved.

8.3.8 At the current level research has an allocation of Rs. 9.03 crores under General Education and Rs. 2.5 crores under Technical Education (Total, Rs. 11.53 crores). Research is carried out through institutions like the Indian Council of Social Science Research, Indian Council of Historical Research, Indian Council of Philosophical Research, National Institute of Educational Planning and Administration etc. Research being a very important component of education, there cannot be any cut-backs on expenditure for the same. However, output of these institutions could be assessed by objective standards particularly with reference to their original charters.

Delivery Systems

8.4.0 Based on the Programme of Action, internal and external efficiency of the entire system of education is being sought to be significantly improved. Specifically, the following important measures could be mentioned:-

         
        -  Early Childcare and          -  Coordinated operation
        Education                       through the ICDs.
        
                                          

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        - Elementary Education   -     Massive programmes for
                                       provision of school buildings,
                                       women teachers and teacher
                                       training. ( These steps are
                                       meant to improve enrolment
                                       ratios, retention, avoidance
                                       of wastage and better
                                       quality of teaching.)
        
        - School Education      (i)    School mapping and establish-
                                       ment of school clusters to
                                       ensure orderly growth of
                                       schools.
        
                                (ii)   Re-orientation of vocationalisation 
                                       so as to develop terminal competencies       
                                       amongst students to equip them 
                                       for self-employment on completion 
                                       of their courses.
        
        - Higher Education             Provision of minimum levels
                                       of infrastructure for
                                       Universities and colleges for 
                                       maintenance of quality standards; 
                                       grant of autonomy to colleges 
                                       for  framing of curricula,  courses  
                                       of study etc; net working between 
                                       higher education institutions;        
                                       utilisation of spare capacities 
                                       for generating internal 
                                       resources through consultancy and 
                                       service to community, industry etc.
        
        - General          -           Arrangements for ensuring
                                       accountability to local 
                                       communities; involvement of 
                                       voluntary agencies; 
                                       application of science and 
                                       technology; and improvements 
                                       in management information 
                                       and monitoring system.
        
                                          

Diversion of funds from School Education to other Sectors.

8.5.0 As already brought out elaborately, the policy approach is one of consolidation of higher education

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and better deployment of resources in school Education sector, Particularly Elementary Education Sector. Significant involvement of the Central Govt. in the School Education sector through large scale investment under schemes like Operation Blackboard, Non Formal Education, Teacher Education, Education Technology, Science Education and Vocationalisation has itself given a major thrust in influencing the States to concentrate in this Sector. Nonetheless, the fact remains that this is an area where State Govts. have to exercise considerable discipline. Often State Govts. get strongly influenced in expanding higher Education institutions. This results in limited resources being spread thin and consequent denial of allocations to the School Sector.

Micro level norms -for buildings, laboratory, furniture and other teaching aids.

8.6.1 The University Grants Commission has laid down detailed norms in regard to buildings, laboratory, etc. in publications such as Terms and Conditions of Affiliation of Colleges, Guidelines on the Scheme of Autonomous Colleges, Guidelines for Development of Infrastructure for Physical Education, Guidelines on Development Proposals of Colleges, etc.

8.6.2 The Deptt. of Education has also laid down detailed norms for engineering as well as technicians' institutions. in regard to space, equipment, furniture, staff recurring costs, etc.

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8.6.3 The various States have also evolved norms for these purposes.

8.6.4 The basic problem in regard to the implementation of these norms is again resource constraint, For want of resources, Govts. are not able to provide adequate class rooms, workshop facilities, libraries, equipment, etc. This situation in turn tells upon the quality of output from the educational institutions.

8.6.5 In projectised implementation of various programmes like Operation Blackboard and Teacher Education, very detailed and extensive norm have been stipulated for being followed on an All India basis by the States.

Recovery of Costs and Reallocation of Resources

8.7.1 As already pointed out in para 3.0.0 the National Policy on Education 1986, amongst other things, envisages raising fees at the higher levels of education.

8.7.2 In colleges of general higher education fees were prescribed about 4 decades ago. Commitment does not exceed Rs,15-20 per month. Receipts on account of fees are estimated to be inside of 10% of the overall revenues of the collegiate institutions -including exam fees. In technical institutions - at graduate level studies fees range from Rs.200-350 per annum. The present levels of fees were prescribed about two decades ago.

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8.7.3 Tuition fees could be charged at least to recover part of the cost of providing higher education (general as well as technical), This is likely to have the following results :

i) Tuition fee charges could generate revenues without adversely affecting enrolments.

ii) Students having financial stakes in higher education may give better performance and so improve their quality.

iii) This would influence students'selection.

iv) This would improve equity, particularly where fees would be linked to earning capacities of parents.

8.7.4 Already a few scholarship schemes are under implementation. Such scholarships could be continued in order that poorer students could be helped in pursuit of higher education. There could be loan scholarships too, This would enable students to undertake higher education currently against future income.

8.7.5 However, cost recovery policies may not receive ready acceptance at policy levels. This is mainly on account of long established practices of free education/ education at nominal costs. There could be administrative problems in having to handle a large number of scholarship particularly those relating to loans. Recoveries of loans may also be affected by default, drop-outs, repetition, unemployment after attainting qualification, low levels of earnings etc.

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8.7.6 In the general scenario of education set UP in India, costs recovered, if that happens, have to be necessarily deployed for supporting elementary education because of the basic policy regarding universalisation of education in this sector. May be, some resources generated by cost recovery steps could be deployed for supporting vocational education on the revised pattern because that aim at self- employment for the students concerned after the completion of their courses.

C O N C L U S I O N

9.00 Taking an integrated view of the 'overall Plan and Non-plan activities at the Central and State levels, it may be appreciated that there is no scope for cutting down expenditures, Education has come to be an area of high degree of under investment. The .sector being in the area of social services, there are difficulties in enhancing revenue receipts. The National Policy on Education, 1986 and the Programme of Action have indeed helped in putting under microscope virtually all the activities in the Education sector. Steps have been set afoot for achieving internal and external efficiencies.The most basic problem is one of clearing backlogs in providing infrastructure facilities and of putting adequate resources in the hands of the State Govts. to meet past and continuing commitments. In the circumstances, the Ninth Finance Commission may be pleased to take stock of the requirements presented in Table 13 and recommend

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adequate grants so as to reverse the trend of underinvestment in this vital sectors.

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