5.2.13 Discussion of the Results. The Approach Paper to the Eleventh Plan has suggested that it would be desirable to increase the enrolment rate in higher education by about 5 percent in the Eleventh Plan period. This should be considered as the targeted increase in GER over the plan. Given the current trends and requirements, it may be assumed that technical and professional education, and the private sector in higher education will expand a high rate in the Plan period. Allowing for this, It has been estimated the required increase in general education enrolments. Financing requirements have been estimated on the bases of two different per student recurring cost requirements. The likely costs to meet this requirement could be about Rs. 3260 crores or only about 0.2 percent of the Plan.The norm based estimate shows that the cost of higher education will exceed 1 % of GDP in the final year. However, if the existing per student expenditures are only increased marginally, the percentage of GDP devoted to higher education will increase to only 0.86 percent (including the expenditure on Central universities under the Oversight Committee’s recommendations).
5.2.14 It may be noted that the Committee chaired by Prof. Tapas Mazumdar has recommended a target of 1 percent of GDP, consistent with the CMP’s commitment of reaching the target of spending 6 percent on education. This is not recommended as a ceiling, since it is conceded that education should require higher financial support. On the other hand, the Approach Paper has recommended an expenditure increase by 0.25 percent of GDP. This would imply a total expenditure by the Centre of 0.31 to 0.33 percent of GDP (excluding technical education). As per the Working Group’s calculations, the norm based expenditure would require an additional outlay of 0.72 percent with norm based expenditures and 0.42 percent with mark-up based expenditures. Given the current fiscal scenario, it is proposed that the Center’s commitment to the sector be kept at 0.42 percent of GDP (as projected in the mark-up based scenario). At the same time, it has to be recognized, that there has been considerable neglect of the sector by the State governments as a whole. Efforts have to be made to increase state spending on higher education so that the states may be able to contribute to bridge the gap between the two estimates (norm based and mark-up based). At the same time, it may also be possible for the States (as well as the private aided institutions) to share the increased outlay that is being proposed.
