THE FINANCING OF EDUCATION
With the increasing commitment of resources to education, resource allocation for education has over the years seen an increase from Rs. 1,550 million in the First Five Year Plan to Rs. 1, 95,997 million in the Eighth Five Year Plan (1992-97). The expenditure on education (as percentage of Gross National Product-GNP), also rose from 0.8 per cent in 1951-52 to 3.23 per cent in 1994-95.
Government financing of education The total expenditure on education increased by 60.5 per cent during 1990-95, of which the central government's share was about 9 per cent. As a percentage of GNP, the increase during the period has been marginal but a substantial increase up to 6 per cent of GNP is envisaged by the turn of this century. A comparative statement of total expenditure on education by the central and state government during 1990-91 to 1994-95 is given below.
From the table it is seen that the expenditure on education increased from Rs. 1,71,937 million in 1990-91 to Rs. 2,75,940 million in 1994- 95, implying an increase of 60.4 per cent.
The bulk of the financial outlay on education was to elementary and AE. The total expenditure on elementary education rose from Rs. 79,555 million in 1990-91 to Rs. 1,29,834 million in 1994-95. The total expenditure on AE rose from Rs. 2,731 million in 1990-91 to Rs. 3,585 million in 1994-95.
Expenditure on select quality aspects may be seen above. The expenditure on elementary education and AE is mainly incurred by the central government, state governments and
BUDGETED EXPENDITURE ON SELECT QUALITY ASPECTS
OF ELEMENTARY EDUCATION
1992-93(Actuals) 1993-94(Revised Estimates) 1994-95(Budgeted Estimates)
%age to total %age to total % age to total
exp. on primary exp. on primary exp. on primary
Total education Total education Total education
Teacher's Training 11,02,998 1.20 9,66,503 0.89 10,82,529 0.90
Textbooks 4,28,862 0.47 4,96,871 0.46 4,31,209 0.36
Direction, Inspection 26,59,850 2.90 23,21,071 2.13 25,63,574 2.12
and Administration
Source: Government of India, Department of Education, Analysis of Budgeted Expenditure
local bodies. Voluntary agencies which are participating in providing basic education to children and youth are mostly being financed from central and state funds.
The Government provides free education to all children upto the elementary stage and provides incentives to children, particularly, those from the disadvantaged sections. The mid-day meal programme which has been taken up on a large scale from August, 1995 is one of the important incentives being provided by the government. The literacy programmes on AE are also free. Not only is no fee charged but teaching/learning material is also provided free of cost.
Secondary education received 23.35 per cent of the education budget in 1993-94, 21.62 per cent in 1994-95 to 22.4 per cent in 1995-96.
The financial allocation for higher education was 12.31 per cent of the education budget in 1993, rose marginally to 14.20 per cent in 1994-95 and fell to 13.40 per cent in 1995-96.
Externally aided projectsThe lost few years have witnessed an increase in externally aided projects for elementary education which is part of the Education for All programme.
External assistance for education in India has been considered only within the parameters laid down by the Central Advisory Board on Education (CABE). The parameters are:
* The external funding should be an additionality to the resource for education.
* The project must be in total confirmity with the national policies, strategies and programmes.
* The project formulation should be the responsibility of the Centre/State Government/other national agencies and that project formulation should be a process of capacity building.
* The project must be drawn up on innovative lines emphasising people's participation, improvement of quality and equality of education and a substantial upgradation of facilities.
* External assistance should be used for educational reconstruction which should go beyond conventional measures, such as, opening of new schools and appointing teachers and addressing issues of content, process and quality.
A brief write up on some enternally aided projects is given below:
* The Uttar Pradesh Basic Education Project, funded by the World Bank envisages an outlay of Rs. 7,280 million over the period 1993-2000.
* The World Bank is also funding the major intervention for universalisation of primary education, the DPEP. Allocations for the programme were Rs. 2,309.4 million in 1995-96 and for 1996-97 estimated expenditure is Rs. 2,385 million. Funding to the DPEP comes from the Overseas Development Administration (ODA) (in Andhra Pradesh and West Bengal), and European Community (in Madhya Pradesh).
* The Mahila Samakhya Project assisted by the Government of Netherlands works towards women's equality and empowerment through education. This project has an outlay of Rs. 510 million over the period 1989-97.
* The Swedish International Development Agency (SIDA), supports the Lok Jumbish Project, a Peoples' Movement for Education in Rajasthan. Phase I of the project had an outlay of Rs. 180 million over the period 1992-94. Phase II of the project envisages an outlay of Rs. 100 million upto 1998.
* The Shiksha Karmi Project also assisted by the SIDA has been working in Rajasthan to expand primary education, especially, in the remote and backward villages of the state. The project had an outlay of Rs. 208 million in Phase I (1987-94) and has Rs. 240 million in Phase II (1994-97).
* UNICEF has provided financial and technical support to innovative projects including the MLLs, the project for evaluating TLCs, and the Project Radio Education in Adult Literacy.
* UNICEF also has supported district-specific projects including the Madhya Pradesh Project for Teacher Empowerment, the Bihar Education Project (the outlay of the project is Rs. 3,600 million over the period 1991- 96), the Andhra Pradesh Project for Girls' Education, the Project on Integrated Education for the Disabled Children (IEDC), and the Bombay Municipal Corporation Project for the improvement in the quality of primary education.
Other Externally aided projects are:
* Technical Education Project I & II, launched in 1990 and 1992 seeks to upgrade technical education in the country. This project is funded by World Bank to the tune of US $ 517 million.
(ii) Regional Engineering Colleges: Under this Scheme, an Indo-UK Technical Cooperative Project provides assistance to 8 RECs on 4 para-technical themes Design, Energy, Materials Engineering & Information Technology
Innovation in technical education Excellence in polytechnic education World Bank assisted project
In pursuance of the new education policy, a massive project with the assistance of World Bank for the polytechnic education is under implementation in the country, with the thrust on expansion of capacity, improvement in quality and the efficiency improvement of the system. The project covers states including 2 union territories at an outlay of Rs. 16,500 million involving 536 polytechnics. Besides infrastructure development in terms of newer laboratories and modernising the old ones, the thrust is on establishing learning resource development centres, learning resource user centres and continuing education centres. The focus on industry-institute interaction is also included. Faculty development of the polytechnic teachers, both within the country in premier institutions and TTTIs, along with training of polytechnic teachers overseas in emerging areas are taken up.