How Much Budget For Education In India?


How Much Budget For Education In India
The Union Budget has been praised for making education available to everyone by digitizing it. However, many people believe that more could have been done to improve education. Several top academics applauded Nirmala Sitharaman’s release of the Union Budget 2022 on February 1.

As part of the budget, the industry praised the PM e-Vidya scheme’s “one class one TV channel” initiative for fostering human capital. 19 March 2022 Palanivel Thiaga Rajan, the Finance Minister of Tamil Nadu, will present his state’s budget for 2022-23 at the House on Friday (March 18). According to him, the ongoing conflict between Russia and Ukraine will create demand shocks and supply disruptions in fiscal year 2022-2023 as a result of Russia’s invasion of Ukraine.

According to Budget Minister Palanivel Thiaga Rajan, the revenue shortfall has been reduced by Rs 7,000 crore. According to the revised budget projection for 2021-22, the revenue deficit will be Rs 58,692.68. Experts warn that inflationary pressures may damage the state economy, he says.

  • According to a letter he wrote, the Chief Minister has proposed extending the GST compensation period by two years, which expires in 2022.
  • Free textbooks will be provided to students in kindergarten through 10th grade.
  • It established a digital university, developed an environment conducive to inter-university interaction, and introduced a number of skill development programs.

This represents an increase of 6.6% (Rs 9,000 crore) over the current fiscal year’s budget for the Department of School Education and Literacy. Through upskilling, reskilling, and other learning measures, the government will be able to achieve its long-term goal of increasing youth employability.

  1. Finance Minister Nirmala Sitharaman recently unveiled Budget 2022, which focuses on digital education, job creation, agricultural colleges, and developers’ skill development.
  2. In 2022, the education budget will be Rs 1,04,278 crore, up Rs 11,054 crore from last year.
  3. Budget allocations for education for 2021-22 were Rs.93,223 crores, a 6% decrease from the previous year.

An estimated 88,002 crore were revised downward. The government granted a 11.86 percent increase in general funding to education specialists this year. What else is happening? 63,449.37 crore has been allocated to the Department of School Education and Literacy.

  1. A grant of Rs 40810.34 crore (revenue) has been granted to the higher education department.
  2. The budget allocation for education in 2021 has been reduced from 93,223 crores to 88,002 crores.
  3. A budget allocation of Rs 127 crore has been reduced from Rs 250 crore in 2021-22 to Rs 127 crore in 2022-23 for teacher and adult education.

Additionally, in 2011, the education budget accounted for 11.4% of the entire budget, but in 2016-17 it had fallen to 10.2%. In 2020-21 it will be 10.4%.

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Despite the fact that the National Education Policy and other national policies call for at least 6% of GDP to be invested in education. Education spending, however, was 2.8 percent of GDP as of January 31, 2019, 3.1 percent (updated estimate) in 2020-21, and 3.1 percent in 2021-22.
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How much does India spends on education?

Education Budget 2022: Major plans for education – Apart from the above listed schemes, here are the major plans in the education sector for India, moving forward: Digital education The pandemic exposed the vast digital divide in India and better digital infrastructure was a big demand from the union budget this year.

  • Millions were unable to go to schools and also lacked access to mobiles, laptops or steady internet connectivity to continue online education.
  • While thousands of remote and rural schools remained shut simply because of lack of means to teach and the Covid-19 safety protocols, many students traipsed through forests, climbed mountains and sat on the roadside to get internet access on smartphones.

As per the education budget announcements:

  • A digital university will be developed to provide access to students for world-class quality education with ISTE standards.
  • “The best public universities and institutions in the country will collaborate as a network of hub-spokes,” Sitharaman said in her budget speech.
  • Digital infrastructure in rural areas will be improved especially through the announcement of Vibrant Villages Programme under which DTH access will be provided to Doordarshan and educational channels for villages in the northern border areas.
  • Other budget proposals like the Bharatnet project for optical fibre network and 5G spectrum auction will also help promote digital education.
  • Focus on skill development and vocational education
  • The education budget 2022 is focusing a lot on skilling programmes which is a boon for the nation as the Covid-19 pandemic has caused a major hit in this field.
  • As per the announcements:
  • The Skill Hub Initiative of MoE and MSDE will be launched in 5000 skill centres during the next year.
  • ITIs will start courses on skilling.
  • The Digital Ecosystem for Skilling and Livelihood DESH-Stack e-portal will be launched for the skilling, upskilling and reskilling of the youth.
  • The e-portal will also provide API-based trusted skill credentials, payment and discovery layers to find relevant jobs and entrepreneurial opportunities
  • The skill sector is to be reoriented to promote continuous skilling avenues, sustainability, and employability, and the National Skill Qualification Framework (NSQF) will be aligned with dynamic industry needs.
  • 750 virtual labs will be created in science and mathematics.
  • 75 skilling e-labs will be created for simulated learning environments.

E-learning in regional languages The Covid-19 pandemic caused a major learning loss for Indian students. Approximately 1.5 million schools and 1.4 million ECD/Anganwadi centres were closed during this period. Through pandemic waves since last year, most schools closed and re-opened several times.

  • The ‘One class, one TV channel’ programme of PM eVIDYA will be expanded from 12 to 200 TV channels for all states to be able to provide supplementary education in regional languages for Classes 1 to 12 to make up for the loss of formal education due to Covid-19 pandemic, especially for students from rural areas, weaker sections and SC-ST communities.
  • Teachers will be encouraged to develop quality e-content in different languages and different subjects so that any teacher or student can access the content from anywhere and get benefitted. A competitive mechanism to promote development of quality e-content by the teachers will be created to ensure empowered teachers and curious students.
  • The concept of digital teachers in all spoken languages will be developed. Learner facing e-content will be developed in innovative teaching formats such that all content can be made simultaneously available through different mediums like online, on TV and on radio.
  • The concept of digital teachers in all spoken languages will be developed. Learner facing e-content will be developed in innovative teaching formats such that all content can be made simultaneously available through different mediums like online, on TV and on radio.
  1. Job creation
  2. Unemployment issues have been weighing heavy on India’s youth.
  3. As per the education budget announcements:
  • Nirmala Sitharaman said the government was targeting the creation of 60 lakh jobs in 14 sectors through PM Gati Shakti and the Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat.
  • Sectors of animation, gaming, and comics could bring in an employment boom. An animation, visual effects, gaming, and comic (AVGC) promotion task force will be set up to realize the potential of this sector is also a very welcome step. This will also aid in experiential learning.
  • Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service which will create employment opportunities.
  • Focus on specialised learning in higher education
  • Certain sectors like the agriculture industry and the urban planning industries in India are being given more focus for better higher education.
  • As per the education budget announcements:
  • States will be encouraged to revise the syllabi of agricultural universities to meet the needs of natural, zero-budget, and organic farming, and modern-day agriculture.
  • Five existing academic institutions in different regions will be developed in centres of excellence in urban planning. These centres will be provided endowment funds of Rs 250 crore each for developing India-specific knowledge in urban planning and design.
  • AICTE will take the lead to improve syllabi, quality and access of urban planning courses in other institutions.
  • World-class foreign universities and institutions will be allowed in the Gujarat International Finance Tec-City or GIFT City to offer courses in various subjects like Financial Management, FinTech, Science, Technology, Engineering and Mathematics.

Mental health of students Another aspect worth mentioning is the announcement of the National Tele Mental Health programme in Budget 2022 as a recognition of how the Covid-19 pandemic affected not just physical health but also the mental health of people of all ages, including students.

  • The programme will include a network of 23 tele mental health centres of excellence.
  • “NIMHANS will be the nodal centre, and IIIT Bangalore will provide technological support for the mental health programme,” Nirmala Sitharaman said.
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Published On: Feb 1, 2022 : Education Budget 2022 increases by 11.86%: Major areas of union budget allocation, schemes covered, new plans
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What is the education budget of India 2022?

PM Modi to highlight Budget 2022’s positive impact on education sector today at 11 AM Prime Minister Narendra Modi on Monday will be addressing a webinar on how Union Budget 2022 will have a positive impact on the, The webinar will be held at 11 AM. At 11 AM today, will be addressing a webinar on how this year’s Union Budget will have a positive impact on the education sector.

Narendra Modi (@narendramodi) This year, Union finance minister announced to set up a digital university with ISTE standards in her budget speech on February 1. The country’s education sector received an 11% hike in the 2022-Budget. It set aside ₹ 1.04 lakh crore for education-an increase of around ₹ 11,000 crore.

Battered by the two years long Covid-19 lockdown and the digital disruption, the government also announced to expand the initiative under the PM e-Vidya scheme to 200 channels from the existing 20 for the education sector. However, the allocation under the digital India e-learning programme, which includes the PM e-Vidya scheme, was lowered to ₹ 421.01 crore for 2022-23 from ₹ 645.61 crore in the last financial year.

Of the total outlay, FM Sitharaman allocated ₹ 63,449.37 crore for schools, and ₹ 40,828.35 crore for higher education. Last year, the financial allocation for the school and higher education departments was kept at ₹ 54,873.66 crore and ₹ 38,350.65 crore, respectively. Catch all the and Updates on Live Mint.

Download The to get Daily & Live, : PM Modi to highlight Budget 2022’s positive impact on education sector today at 11 AM
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What is the national budget for education?

Public Education Spending in New York – New York schools rank 1 st in spending and 2 nd in funding. Home to 5.21% of the nation’s K-12 students, the state receives 9.86% of all U.S. public primary school funding.

  • New York K-12 schools spend $24,881 per pupil for a total of $65,549,087,000 annually.
  • Expenditures are equivalent to 4.65% of taxpayer income.
  • New York K-12 schools receive $3,682,993,000, or $1,398 per pupil from the federal government.
  • State funding totals $29,698,937,000 or $11,273 per pupil.
  • Local funding totals $42,029,493,000 or $15,954 per pupil.
  • State and local funding is equivalent to 5.09% of New York’s taxpayer income.
  • Federal education funding is equivalent to 0.26% of the state’s taxpayer income.
  • Funding for K-12 education in New York totals $75,411,423,000 or $28,625 per pupil.
  • The difference between spending and funding is $9,862,336,000 or $3,744 per pupil.
  • At the postsecondary level, public colleges and universities spend $30,293 per pupil, 32.1% of which goes toward instruction.
  • Federal funding for public postsecondary institutions averages $1,126 per student.
  • State and local funding averages a combined $11,778 per student.
  • Tuition accounts for 14.5% of all funding, a 5.05% smaller proportion than in the previous academic year.
  • 3.18% of all postsecondary funding comes from sales and services of auxiliary enterprises.
  • New York’s 2-year community colleges spend 21.2% of what its 4-year public colleges spend in a year.

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How much does Pakistan spend on education?

Pakistan Education Spending 1993-2022 General government expenditure on education (current, capital, and transfers) is expressed as a percentage of total general government expenditure on all sectors (including health, education, social services, etc.).

Pakistan education spending for 2019 was 11.59%, a 2.95% decline from 2017. Pakistan education spending for 2017 was 14.54%, a 0.52% decline from 2016. Pakistan education spending for 2016 was 15.06%, a 1.88% increase from 2015. Pakistan education spending for 2015 was 13.19%, a 1.89% increase from 2014.

Pakistan Education Spending – Historical Data
Year Education Spending (% of GDP) Annual Change
2019 11.59% -2.95%
2017 14.54% -0.52%
2016 15.06% 1.88%
2015 13.19% 1.89%
2014 11.30% -0.21%
2013 11.51% 0.47%
2012 11.04% 0.12%
2011 10.92% -0.94%
2010 11.86% -0.22%
2009 12.08% -2.01%
2008 14.10% -1.35%
2007 15.45% 0.16%
2006 15.29% 1.51%
2005 13.78% 2.55%
2004 11.23% 2.74%
2000 8.49% -2.82%
1999 11.31% -0.45%
1997 11.75% 1.68%
1996 10.07% -0.24%
1995 10.31% 0.94%
1994 9.38% 1.57%
1993 7.80% 1.57%

Pakistan Education Spending 1993-2022
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How does India rank in education?

India holds a satisfactory position in the list of the world’s best education systems, according to a CEOWORLD survey with a quality index of 59.1.
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How much does China spend on education?

China Education Spending 1983-2022 General government expenditure on education (current, capital, and transfers) is expressed as a percentage of total general government expenditure on all sectors (including health, education, social services, etc.).

China education spending for 2020 was 10.53%, a 0.7% decline from 2019. China education spending for 2019 was 11.23%, a 0.47% increase from 2018. China education spending for 2018 was 10.76%, a 0.83% decline from 2017. China education spending for 2017 was 11.59%, a 0.3% decline from 2016.

China Education Spending – Historical Data
Year Education Spending (% of GDP) Annual Change
2020 10.53% -0.70%
2019 11.23% 0.47%
2018 10.76% -0.83%
2017 11.59% -0.30%
2016 11.89% -0.22%
2015 12.10% -0.75%
2014 12.85% -0.63%
2013 13.49% -0.99%
2012 14.48% 1.49%
2011 12.99% -1.98%
2010 14.96% 1.45%
2009 13.51% -0.79%
2008 14.30% 5.88%
2007 8.42% -0.90%
2006 9.32% -0.18%
2005 9.50% -3.13%
1999 12.63% -1.92%
1998 14.55% -4.95%
1996 19.51% 0.79%
1995 18.72% -1.35%
1994 20.06% 5.29%
1993 14.77% 2.48%
1992 12.29% 1.55%
1988 10.74% 1.28%
1987 9.46% -0.98%
1986 10.44% -0.25%
1985 10.69% 0.93%
1984 9.76% 0.20%
1983 9.56% 0.20%

China Education Spending 1983-2022
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Which state has highest education budget in India?

Education Spending: A Tale of Two States Kerala has the highest literacy rate in the nation, above ninety percent. The way Kerala spends its education money is also strikingly different from the other states. For illustration, I compare it with the state of West Bengal.

Ideologically the governments of both states are equally committed to basic education and literacy. Both states have for long had popularly elected Marxist governments. The conclusions of the comparative analysis are however generally valid. Table 1 highlights some of the crucial differences in the educational structure and the nature of government spending on education in the two states.

Table 2 shows the effect of those differences on the performance of the education system in terms of literacy rate and the proportion of children never enrolled in school. (All data are from the NSSO 1991, 1993 and NCAER 1994; see also Tilak 1996. The data are for the year 1986-87 or 1991-92.) Kerala is one of the few states in the country were elementary education is not made compulsory by law.

  1. Both governments spend almost equal fraction of the total budget on education (about 25 percent).
  2. In West Bengal, 84 percent of rural children do not pay any fee for primary education but that number is only 48 percent in Kerala.
  3. Sixty percent of rural primary school children get free textbooks and supplies in West Bengal, only two percent in Kerala do.

Households with less than Rs.3000 in annual per capita income spend 25 percent of the income on elementary education in West Bengal but in Kerala it is 36 percent. The poor in Kerala spend the highest fraction of their income on their children’s basic education compared to the poor in any other state in the country.

Characteristics West Bengal Kerala
Elementary Education Compulsory Yes No
Fee-Free Primary Education 84% 48%
Free Textbooks and Stationary 60% 2%
Proportion of Income Spent on Primary Education by Households in the Lowest Income Quintile 2.5% 3.6%
Share of Education in the State Budget 26% 25%

Given these facts—more children get free education and supplies in West Bengal and the poor are asked to spend more of their own money in Kerala—one would expect that West Bengal would have a much higher literacy rate than Kerala. The facts speak otherwise (Table 2).

Characteristics West Bengal Kerala
Literacy Rate 57% 91%
Children (age 6-14) Never Enrolled 46% 2%

Kerala and West Bengal: Unfair Comparison – Kerala undoubtedly has had a head-start: There have been strong education movements in the state since the pre-independence days and the government has consistently spent a much larger proportion of its budget on education since independence.

It then seems unfair to compare the two states in terms of their educational performance. The cross-section comparisons at a single point in time do not control for variations over time. Kerala’s current spending on education is almost the same as West Bengal, but since Kerala had a head-start, current literacy rates and the reach of education are likely to be different.

Nonetheless it is instructive to examine the distribution of their education spending. Kerala and West Bengal have chosen to spend their education money rather differently. The difference in the nature of their spending is the real purpose of this comparison.

Characteristics West Bengal Kerala
Free Primary Education in Government Schools 84% 48%
Free Primary Education in Private Schools 15% 48%
Grant of Scholarship 0.5% 10%
Transport Subsidy 2.3% 5.4%
Proportion of Private (aided) Primary Schools 11% 60%

It is surprising that in a thoroughly Marxist state like Kerala, 60 percent of the rural primary schools are private, as compared to only 11 percent in West Bengal. The proportion of private primary schools in Kerala is the highest in the country; the second highest is Maghalaya at 21 percent, and the national average is only five percent.

The government of Kerala also pays expenses of almost half of the students enrolled in private primary schools. The number for West Bengal is 15 percent which is the third highest in the country (Tamil Nadu is at 20 percent); the national average is again about five percent. Kerala has the highest proportion of private primary schools and it also subsidises the highest proportion of students in private schools.

Both of these facts give the citizens of Kerala wider effective choice in selecting primary schools for their children. Many of the private schools are run by various religious groups in the state. They are generally more likely to be successful in exerting pressure on parents to send their children to school.

  1. The choices available to parents must increase attendance as well as retention rates in the state.
  2. Erala uses its public funds to encourage competition among schools.
  3. To avoid transportation costs, most parents generally send their children to the nearest school.
  4. The resulting “geographical clustering” of schools and their customers lessens competition among schools.

Each school has a captured customer base. By subsidising transportation costs, Kerala helps parents send their children to the school they consider best, irrespective of the distance. This increases competition among schools. The provision of direct scholarship to students in Kerala also leads to the same result.

  1. With the scholarship money, students can go to any school of their choice.
  2. Among all the states in the country, the highest proportion of children in Kerala receives transportation subsidies and direct scholarships (Table 3).
  3. The focus on how the two governments spend their education rupees indicates that Kerala by offering more choices to parents and increasing competition among schools actually practices market principles.

Kerala’s citizens have received far better educational service than those of almost any other state in the union. The Kerala model of education—of choice and competition—is unique in the country, and so is Kerala’s educational performance. It is not just how much a state spends on education but how it spends that determines efficiency and effectiveness of the education system.

The status of higher education in these two states is also worth comparing. State universities in West Bengal receive 91 percent of their budget from the government. In Kerala it is only 54 percent, the remaining amount is generated by fees, donations, endowments, and other sources. Again Kerala requires its universities to raise almost half of their budget from the customers and communities they serve.

This fosters accountability and more attention to the needs of those who help finance state universities. This is one of the important reasons that Kerala performs better also in higher education than many other states in the union. Source of Funding and the Nature of Spending

Central Universities State Universities
Percent of Budget from the Government 90% 50%
Percent of University Budget Spent on Administration 41% 18%
Percent of University Budget Spent on Academic Programs 33% 55%

It may be pertinent to note that in general the higher the funding from the government, the lower the spending on academic programmes at universities. Central universities receive more than 90 percent of their funds from the central government and spend about 33 percent on academic programs and support and 41 percent on administration.

  • The state universities on average get a little more than 50 percent of their money from state governments and spend 55 percent on academics and only 18 percent on administration.
  • The state universities that are more dependent on non-government funds pay more attention to their students and less to their bureaucracy.

In Kerala, the government has been spending more on education but so do the people of Kerala. The poor in the state spend about 3.6 percent of their annual per capita income on elementary education—the highest proportion in the country (Table 1). Contrary to the conventional wisdom, government spending is not a substitute for private spending.

  • Both seem to grow together; they are complementary.
  • Parents’ financial commitment to their children’s education is a crucial component of quality education.
  • Moreover, as the empirical evidence suggests, schools and universities that depend on non-government funds manage their finances more responsibly and are more attentive and responsive to the needs of their customers.

: Education Spending: A Tale of Two States
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How much money did the government spend on education in 2022?

Each year federal agencies receive funding from Congress, known as budgetary resources. In FY 2022, the Department of Education (ED) had $637.70 Billion distributed among its 10 sub-components. Agencies spend available budgetary resources by making financial promises called obligations.
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Is education in India free?

Departmen of School Education & Literacy The Constitution (Eighty-sixth Amendment) Act, 2002 inserted Article 21-A in the Constitution of India to provide free and compulsory education of all children in the age group of six to fourteen years as a Fundamental Right in such a manner as the State may, by law, determine.

The Right of Children to Free and Compulsory Education (RTE) Act, 2009, which represents the consequential legislation envisaged under Article 21-A, means that every child has a right to full time elementary education of satisfactory and equitable quality in a formal school which satisfies certain essential norms and standards.

Article 21-A and the RTE Act came into effect on 1 April 2010. The title of the RTE Act incorporates the words ‘free and compulsory’. ‘Free education’ means that no child, other than a child who has been admitted by his or her parents to a school which is not supported by the appropriate Government, shall be liable to pay any kind of fee or charges or expenses which may prevent him or her from pursuing and completing elementary education.

  1. Compulsory education’ casts an obligation on the appropriate Government and local authorities to provide and ensure admission, attendance and completion of elementary education by all children in the 6-14 age group.
  2. With this, India has moved forward to a rights based framework that casts a legal obligation on the Central and State Governments to implement this fundamental child right as enshrined in the Article 21A of the Constitution, in accordance with the provisions of the RTE Act.

The RTE Act provides for the:

Right of children to free and compulsory education till completion of elementary education in a neighbourhood school. It clarifies that ‘compulsory education’ means obligation of the appropriate government to provide free elementary education and ensure compulsory admission, attendance and completion of elementary education to every child in the six to fourteen age group. ‘Free’ means that no child shall be liable to pay any kind of fee or charges or expenses which may prevent him or her from pursuing and completing elementary education. It makes provisions for a non-admitted child to be admitted to an age appropriate class. It specifies the duties and responsibilities of appropriate Governments, local authority and parents in providing free and compulsory education, and sharing of financial and other responsibilities between the Central and State Governments. It lays down the norms and standards relating inter alia to Pupil Teacher Ratios (PTRs), buildings and infrastructure, school-working days, teacher-working hours. It provides for rational deployment of teachers by ensuring that the specified pupil teacher ratio is maintained for each school, rather than just as an average for the State or District or Block, thus ensuring that there is no urban-rural imbalance in teacher postings. It also provides for prohibition of deployment of teachers for non-educational work, other than decennial census, elections to local authority, state legislatures and parliament, and disaster relief. It provides for appointment of appropriately trained teachers, i.e. teachers with the requisite entry and academic qualifications. It prohibits (a) physical punishment and mental harassment; (b) screening procedures for admission of children; (c) capitation fee; (d) private tuition by teachers and (e) running of schools without recognition, It provides for development of curriculum in consonance with the values enshrined in the Constitution, and which would ensure the all-round development of the child, building on the child’s knowledge, potentiality and talent and making the child free of fear, trauma and anxiety through a system of child friendly and child centered learning.

: Departmen of School Education & Literacy
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How much Nepal spends on education?

Nepal Education Spending 2000-2022 General government expenditure on education (current, capital, and transfers) is expressed as a percentage of total general government expenditure on all sectors (including health, education, social services, etc.).

Nepal education spending for 2020 was 13.19%, a 2.57% decline from 2019. Nepal education spending for 2019 was 15.76%, a 1.66% increase from 2018. Nepal education spending for 2018 was 14.10%, a 2.99% decline from 2017. Nepal education spending for 2017 was 17.10%, a 2.03% decline from 2016.

Nepal Education Spending – Historical Data
Year Education Spending (% of GDP) Annual Change
2020 13.19% -2.57%
2019 15.76% 1.66%
2018 14.10% -2.99%
2017 17.10% -2.03%
2016 19.13% 2.14%
2015 16.99% -1.29%
2014 18.28% 0.71%
2013 17.57% 0.13%
2012 17.44% -0.55%
2011 17.98% 1.95%
2010 16.03% -3.84%
2009 19.87% -2.36%
2008 22.23% 1.08%
2007 21.15% -4.35%
2006 25.50% 3.21%
2005 22.29% 0.68%
2004 21.61% 0.30%
2003 21.31% 0.87%
2002 20.44% -1.21%
2001 21.66% 2.50%
2000 19.16% 2.50%

Nepal Education Spending 2000-2022
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Does India invest in education?

Status of education in India – Spending on education in India is low even as the country has the largest school footprint in the world with about 15 lakh schools having a total enrolment of over 26 crore students. However, student learning outcomes in the country consistently reflect that universal access has not translated into an improved quality of education in India, according to a recently released report by Niti Aayog,
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Who funds education in Pakistan?

Education Funding is an option for students to support their education financially through various schemes and methods. It can be provided by the government, private agencies or even through personal methods such as the part time job.
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Why India spend so less on education?

Given the state of education in the country, if one tells you to guess the public spending on the sector, you will probably say that it is very low compared to developed countries or the newly industrialised countries like China, Russia, and Brazil. But what if you are told that public spending on education in India is one of the highest in the world among developing countries and equivalent to developed countries.

Data from the World Bank tells us that the global average of public spending on education was 4.5 per cent of GDP in 2017 while India, in the same year, spent 4.4 per cent. China, the country we want to compete with, spent only 4.1 per cent of GDP on education despite having a tax-to-GDP ratio higher than that of India.

For Russia, the spending is even lower at around 4 per cent. On a global scale, the public spending on education as part of total public spending is around 14.3 per cent while for India, the average spending of all states on education is 15.9 per cent.

On top of that, the Union government spends around 3 per cent of its total expenditure on education. So, despite a low tax-to-GDP ratio compared to newly industrialised developing countries as well as developed countries, India’s expenditure on education is comparable to those countries. India prioritised education in public spending, especially in the last two decades, but any substantial impact of that on the quality of education is yet to be seen.

Where does all the money go? Every Tom, Dick and Harry, irrespective of his/her competency, will tell you that India needs to increase its spending on education. The Kothari Commission, which argued that 6 per cent of GDP should be spent on education, is the most common document referred to, to advance this argument.

  1. Most of the committee reports and policies formulated after that argue the same.
  2. However, no one is talking about what is the return on investment on the money being invested.
  3. The enrollment ratio in public schools and colleges in India is one of the lowest in the world despite comparable spending.
  4. So, the question here arises: where does all this money go? Well, all of it is being spent on what economists call ‘revenue expenditure’, that too on teacher salaries.

In most of the states, the share of teacher salaries as a percentage of total expenditure is between 70 per cent to as high as around 90 per cent. On an average, teacher salaries constitute more than 75 per cent of the total expenditure. No country in the world pays its teachers as much as India does.

In India, the salary of a government primary school teacher is as much as 40,000 per month — around Rs 5 lakh per annum. The salary of an average school teacher is four times higher than the per capita income of the country. The salary of assistant professors is even higher at around Rs 70,000 per month and Rs 8 lakh per year, which is 6 times the per capita income of the country.

In comparison, the salary of a government school teacher in California, one of the richest states in the United States, is 68,000 dollars per annum against a per capita income of 59,000 dollars. In most of the American states, the per capita income of the teachers is comparable to per capita income of the state.

On the other hand, in India, per capita income of a government teacher in Uttar Pradesh is around Rs 5 lakh per annum against a per capita income of Rs 70,000. Indian states are paying as much as 5 to 10 times more the per capita income to government teachers. And, it is not that these state governments are paying this much to the teachers out of sheer will.

The teachers are being paid so much because they have become a political constituency. Geeta Gandhi Kingdon, a professor at the University College London, published a research paper in which she argued that ‘over-politicization of teachers is killing public education in India’.

Teachers have become too important a political constituency to be ignored by any political dispensation. In almost all the states that have legislative councils, a certain percentage of seats are reserved for teachers. Every year, one can see the news of teacher agitations in one or the other state of the country.

“Strikes and agitations by aided and local-government school teachers have led to enactment of important education legislation (such as the Salary Disbursement Act, 1971 and the Basic Education Act, 1972 in Uttar Pradesh, the Direct Payment Agreement 1972 in Kerala, etc) which have all but nationalised aided private schools, increased teachers job-security and reduced their accountability to local government officials,” wrote Geeta Gandhi Kingdon.

  • Teachers are so important as a political constituency — given their large numbers — that every manifesto of every political party in states like Uttar Pradesh dedicates a page for them.
  • Therefore, every party talks about ‘regularisation’ of teachers or about an increase in their salaries.
  • However, this hefty pay is limited to only the government teachers.

Private teachers, who are comparatively better, have remuneration ranging from as low as 5,000 rupees per month to a maximum of 25,000 rupees per month compared to 42,000 rupees for government teachers. Despite such low payments to the private school teacher, the majority of Indian children are studying in private schools — even in areas with low per capita incomes — because education in these schools is much better according to parents.

The reason behind poor educational infrastructure and education quality: Government teachers are overpaid and there is very little accountability. More than one-third of the total public expenditure on education goes to teacher/professor salaries and the spending on educational infrastructure, curriculum development, screening, co-curricular activities and many other aspects of learning is very little.

Therefore, there is always a fund crunch for educational infrastructure despite public spending on education in India being one of the highest in the world. Moreover, there is no accountability of the teachers towards the students and their learning outcomes despite the fact they are paid such a hefty paycheck.
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What does India spend the most on?

How the Indian government spends money? The government of India spends a major share, nearly 50%, of its budget on interest, defence, subsidies, health and education. The remaining is spent on funds for various ministries and states, paying pensions and salaries to its employees, government schemes, the welfare of women, children marginalised communities and development of agriculture and rural areas.

  • The government also spends a large sum of money on capital expenditure.
  • Nearly 16% of the total expenditure is devoted to the creation of capital.
  • How much money does India spend on education? The country spends around 3% of its GDP on education.
  • In 2021-22, the government allocated Rs 93,224 crore – a rise of 2.1% from 2019-2020 – to the education budget.

The allocation was distributed among various education schemes, autonomous bodies, mid-day meal programmes, grants to central universities, IITs, UGC, AICTE and NITs. How much money does India spend on healthcare? The government’s expenditure on the healthcare sector has improved to 1.5% of the country’s GDP.

  1. In the 2021-22 Budget, the government allocated Rs 73,932 crore to the ministry of health and family welfare, the nodal healthcare agency in India – this was less than the 2020-21 revised estimates of Rs 82,928 crore.
  2. How much money does India spend on defence? Among the various sectors, defence has the highest allocation.

The 2021-22 Union Budget allocated over 13% of its total budget to defence. In the 2021-22 Budget, the government set aside Rs 4,78,196 crore for defence expenditure. This was equal to 3% of its total GDP. This was also the third-highest expenditure on the military by a country.

  • How much money does India spend on research and development? In 2018-19, India spent nearly 0.65% of the GDP on research and development.
  • The private sector contributes less than 40% to Gross Expenditure on Research and Development.
  • How much money does India spend on agriculture? The ministry of agriculture is allocated 4% of the budget.

In 2021-22, the government allocated Rs 1,31,531 crore an annual increase of 14%. The Ministry had estimated an expenditure of Rs 1,42,762 crore in 2020-21, which has been reduced by 13% to Rs 1,24,520 crore at the revised stage.
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