FINANCING OF EDUCATION
 

Educational financing in India has developed to be a multisource system although the State has been taking an increasingly commanding position in this behalf since Independence. Education is now financed by the Central Government, State Governments, local authorities and through fees and other sources that include endowments, donations and voluntary contributions.

Educational financing by the Central Government and the State Governments is of two categories, viz., Plan and NonPlan. Plan allocations cover development expenditure while Non-Plan allocation provide for maintenance. The Central Government, however, is directly responsible for the development programmes in the fields within its purview. It also takes up schemes known as Centrally Sponsored Schemes and Central Schemes administered by the States which are of common interest and utility to the State Governments and represent nationally identified objectives. The Central Government has in the post-independence period, been extending increasing financial assistance to the State Governments besides incurring considerable direct expenditure on the Central and Centrally Sponsored Schemes.

The Budgeted expenditure on Education (Revenue Account) at the Centre and the States in 1982-83 was of the order of Rs. 52,000 million as against Rs. 47,000 million in 1981-82 detailed as under

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                                                           (in million rupees)
        
                                          

                           1981-82 (Revised                 1982-83 (Budget
                                Estimates)                       Estimates)
                                          

        
                  Source             Percentage of              Percentage of
                                      Educational                Educational
                           Amount      Budget to      Amount      Budget to
                                       the total                  the total
                                         Budget                     Budget
        
                                          

        State Governments/      42,752      24.3      46,745         24.3
             Union Territory
             Administrations
             Centre              4,300       2.7       5,114          2.8
        
                                          

             Total              47,052      14.0       51,859        13.8
        
                                          

        
                                          

The total expenditure on education in 1980-81 constituted 3.5% of the National income.