Friday, May 1, 2015

Short View about India's Budget Allocation to Public Educational Sector 2015-16

My politics have only one style, only one mantra and only one focus and that is development. And it means that there should be change in the lives of the poor people. Their children should get education, their parents should get medicine. And there should be concrete house in place of jhuggis,

Narendra Modi, our Prime Minister said during Delhi election campaign on Feb 4th 2015(1). 

He said about education, health care and housing during Delhi election rally to get votes from voters. However, in reality, his mantras are unlikely true. This article is about his one of the mantra, i.e. Education in the recent central government budget 2015-16 presented by BJP led government to the parliament on February 28th 2015.

Educational Sector

Table 1 (Source (5)

Department
Revised 2014-15
2015-16
Department School Education & Literacy
Plan(Cr)
Non Plan(Cr)
Total(Cr)

Plan(Cr)
Non Plan(Cr)
Total(Cr)

43,517.90
3,287.10
46,805
39,038.50
3,181
42,219.50
Department of Higher Education
13,000
10,700
23,700
15,855.26
11,000
26,855.26
Total
56,517.90
13,987.10
70,505
54,893.76
14,181
69,074.76

At times, when government is expecting the GDP growth above 5% and crude oil price is less under $50 per barrel, government didn’t increase expenditure in the public education sector, but government reduced the budget allocation for the education sector marginally. Government allocates nearly 69,074 crore of rupees for this year, which is 1431 crore less compared to last year. Last year, Rs. 70,505 crore was allocated in the revised budget, and government reduced the funding in the education department by 2 % in this year. 

Table 2

Age Group
Population (Crores)
0-6
15                                                                     (Source 2)
Less than 18
47.2                                                                 (Source 4)
Less than 25
62.5                                                                (Source 3)

Table 3

Age group
Population (Cr)
Amount per Person per year
Amount Per Month ( 10 Months as 2 Months Vacation
6-18 (School Age group)
32.2
Rs. 1319
131
18-24 (Higher Education age group)
15.3
Rs.1755
175
6-24 (Total Education)
47.5
Rs. 1454
145


10 % expenditure reduced in Department of School Education:

Everybody knew that school education is the building blocks of child's future and future of this country. There are nearly 32.2 crores children in India between the age 6-18, and they are all should have been in schools. In the recent budget, government spends just Rs.1319 per Indian child per year. The government reduced Rs. 4585.5 crores in this budget compared to the last year. The total expenditure for school department will be around Rs.42,219 crores for this year, which is nearly 10 % less compared to the last year. The government allocated Rs.46,805 crores for school education in the last revised interim budget.
  
90 % slashed in Mid Day Meal.

In this budget, there is great reduction of allocation for the mid-day meal scheme. The central government slashed nearly 90 % of allocation for the mid day meal scheme. Government allocated only Rs. 132 crores this year compares to Rs.1, 296.5 crore the last year (8).

Thriving private school business

Recently, government implemented regulation regarding a student-teacher ratio which is needed to be 40:1. When government is imposing such rules, it is essential that government needs to increase the number of schools and allocating more funds to the department of school education unlike reducing the amount meant for it and asking state governments to look after the educational sector. The sources of income for state governments are very less compared to the central government. This budget reduction only helps private schools where some schools are charging more than 1 lakh of rupees for teaching basics alphabets and numerical in their kindergarten schools. 

Children going to private schools increased 40 % in rural areas in the last ten years 

At present, nearly 1 in 3 rural area children (30.3%) are studying in private schools, already 40 % increased compared to the last ten years. In urban areas, it is much higher. Around 75 % children are studying in private schools (9). Government may cite reasons for reduction in allocation by saying quality standards are not raised in government schools as expected. It is the duty of the government to control, maintain and over view the quality standard in education rather blaming the outcome of the system. It indicates that government wants to cut down the expenditure by spending less in school education, which will affect the future of the future generation in this country.  

 Lack of evidence for private schools are better when compare to public schools.

There is no strong adequate evidence from research that private education systems are good compared to public education in developing countries.

Below are some of the findings regarding private schools in developing countries according to UK’s Department for International Development (DFID), (10)  

1)      “Private school pupils may achieve better learning outcomes when compared with state schools. However, there is no adequate evidence for it.
2)      "It is also stated that many children may not be achieving basic competencies even in private schools".
3)      The cost of education delivery is lower in private schools than state schools often due to lower salaries for private school teachers compared with their government school counterparts
From this it is clear that state sponsor schools can perform better compared to private running schools

Higher Education in India:

In order to boost investment from foreign players, government is trying to project as if they are allocating more amount of money in higher education in India. They didn’t actually increase the investment, they have taken the allocation which is meant for primary education department and re distributed to higher education department. There are 15 crore of people in the age group between which is 18-24  which is nearly 10 % of the population qualifies for higher education in India. Government is spending nearly 1755 rupees per person annually.

India's Higher education is $100 Billion Market 

It was estimated that Indian education market is about Rs 675,000 crore ($109.84 billion) in this year. However, government is spending around 9.7 % of the country's requirement. It shows that private players continue to use the opportunity from lack of government investment in the educational sector to get a piece of market share in 600,000 crores business.  

According to Yogendra Yadav, at present expelled from AAP party is also a former member of the University Grants Commission (UGC). He once said that “more than 100 MPs actually own or run private higher educational institutions and HRD ministry (that covers education) actually nominated people running private educational institutes to the UGC (responsible for setting educational standards)”.

Since politicians are running private-education institutions, it is obvious that they frame rules according to their advantage rather thinking about common people. The private players will continue to dominate the higher education in this country, because of lack of funding from government. We can see the results as many new colleges are getting started every year. The aim is not to help students to get knowledge but likely to usurp money from parents who are willing to pay more amounts for their children's education. 

Raise of Social Economical issues

BBC documentary India's Daughter on Gang rape held in Delhi in 2012 provides insight about victim and accused family's social and economical backgrounds. Victim’s parents sold their agricultural lands to support their daughter’s education. She also worked in a call center to meet their educational expenses. On the other side, all the accused didn’t have proper school education. It just a sample picture of  economic and social situation in this country. One section among the people is selling their asset to meet their children higher education expenditure so that their children will have a better future. On the other side, people without proper school education, are turning into criminals. These kinds of scenarios can be reduced or removed, only if the government take priority steps to improve the educational system in this country. 

Sustainable-Development – Emphasis on children education.

The Bhartiya Janata Party (BJP) government led by Narendra Modi often uses the word “Development” in their propaganda. For them, development means bringing more investment to the country, relaxing rules and cutting down red tapes in bureaucracy to make sure investors shouldn't be at loss and helping them to get more returns on investment.

But according to UN, development will sustain only if governments emphasis on education for all children is the foremost step for a sustainable development alongside ending extreme poverty, hunger, and death from preventable and treatable causes (11). From this it clearly shows that, government development will sustain only if children education is taken care by 

Conclusion

Indian economy will be greater than 2 trillion-dollar economy in this year. However, government at present spends nearly 6 % of GDP on total education and just 1.5 % of GDP on higher education. When India is aiming to become a super power, they should increase the allocation of funds to the education department for betterment of future generation's social and economic conditions. 

5 % reduction in corporate tax 

Our government wants to reduce corporate tax to 25 % from the present 30 % in coming years citing to have a competitive advantage among other countries to attract investments. When develop nations want to increase the allocation in education to turn their country’s economy towards the knowledge-based economy in the future. The knowledge-based economy is proposed as a future economic model as development of low cost robotics and automation in the manufacturing sector which will drastically reduce necessity of labours in the manufacturing industry(12). India will lose the competitive advantage compare to other countries in the longer run in the future if it is not provide adequate priority to education sector at present.

 The aim of the private educational institutes will be making profits rather than providing quality education to the people. Only government can provide quality education at lower cost. IITs, NITs, Regional government colleges, Kendra vidyalas are the examples for the above statement. It is unclear that if our prime minister’s main political mantra is children education, then why there is a reduction in funds. From his actions, it seems that education may not be his main mantra.  

References:


5)                    indiadidac.com/blog/item/337-union-budget-2015-16-highlights-for-education-employment-and-skill-development

11)                https://sustainabledevelopment.un.org/sdgsproposal

No comments: