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Education and Budget  

27th January, 2022

Figure 2: No Copyright Infringement Intended

Context:

  • The schools have remained shut for about 20 months now, leading to poor learning outcomes for the children, especially the poor and disadvantaged.

Spending on Education

  • India's Spending vs. Other Countries: According to a recent World Bank research, India spends 14.1% of its budget on education, compared to 18.5 percent in Vietnam and 20.6 percent in Indonesia, all of which have similar GDP levels.
  • Estimates by the Government: According to the Ministry of Education's Analysis of Budgeted Expenditure on Education, most major states spent 2.5 percent to 3.1 percent of their state income on education.
  • Declining spending: In the 2021-22 Budget, despite an increase in the total budget, the central government's allocation for the Education Department was reduced from the previous year.
  • Decline by the states: In comparison to 2020-21, eight states and Delhi lowered or nearly maintained their budget allocation for education departments in 2021-22.

 

Need to enhance spending:

  • Lower Expenditure than Countries with Similar GDP: According to UNESCO's 2030 framework for action, public education spending should be between 4% and 6% of GDP and 15% to 20% of total government spending.
  • Higher Population: India should be allocating a greater amount of the budget than these countries because it has a higher proportion of the population under the age of 19.
  • The Lockdown Caused a Major Loss to the Disadvantaged: During the 20 months of school closures, the great majority of children enrolled in preschool and school did not have meaningful structured learning opportunities.
  • Loss of learning: Basic literacy and numeracy skills, as well as the habit of learning, have all been lost.
  • High Drop Outs: Due to a lack of contact with teachers, millions of people have dropped out of school.
  • Technology's Failure to Replace Teacher Education: Many State governments and the Central government have been investing public resources to use technology in education, but, there is no clear understanding of how much of public money was/is being spent on technology.
  • Challenges on the effectiveness of online learning: There are also concerns regarding the effectiveness of online learning, given only approximately 20% of all students have access to even pre-recorded videos.
  • The Lack of Transparency in Expenditure Data: The combined Central and State government spending on education was estimated to be 2.8 percent of GDP (2018-19) in the Economic Survey of 2020-21, whereas data from the Ministry of Education indicates that public spending on education reached 4.3 percent of GDP in the same year, up from 3.8 percent of GDP in 2011-12.

 

Findings of ASER Survey:

  • Reduction in enrolment: Enrolment of children in government schools has leaped from 65.8 per cent to 70.3 per cent over the last one year.
  • Increase in private tuition: 42% of students depend upon the private tuition up from 32.5%.This is seen as a natural outcome of families seeking external support due to the prolonged closure of schools.
  • Decline in private enrolment: The enrolment in private schools has dipped, for the first time in recent years, from 28.8 per cent in 2020 to 24.4 per cent in 2021.
  • Regional variation: There are wide variations among states, with the rise driven mainly by large northern states and all southern states, except Telangana.

 

 

Way Forward:

  • A Multi-Pronged Approach to Reviving the Education System: The calamity caused by the Covid-19 outbreak may provide an opportunity to address India's chronic underfunding of public education.
  • Focus on needs of Poor and disadvantaged students: The education system now requires not only a multi-year infusion of resources, but also a sharper focus on the needs of the poor and disadvantaged students who are most likely to be negatively impacted by such crises.
  • Focus on output: It is also crucial to keep track of what the public money is spent on, as well as how successfully the resources are used.
  • Additional Resources: In addition to greater government spending, additional resources are required for:
    • Re-enrolment efforts and back-to-school campaigns
    • Malnutrition will be addressed through expanded nutrition programmes.
    • Curriculum reorganisation to assist students in learning language and maths in particular
    • Encourage their social and emotional growth, particularly in the early grades.
  • Increased instructional time during vacations: Supplementary learning resources, continued teacher training and support, additional education programmes, and increased instructional time during vacations and weekends are all available.