Nominal_and_Real_Public_Expenditure_per_Student'>Source: Analysis of Budgeted Expenditure on Education, MHRD, Govt. of India, Various Years. 4.3 Nominal and Real Public Expenditure per Student
The past trend of nominal and real public expenditure per student, however, tells us a completely differentiated and all together different picture of the role of government in financing education. In normal terms the public expenditure per student in elementary, secondary and higher education stands at Rs. 2162, Rs. 6852 and Rs. 12518 respectively in 2003-04. The trend analysis shows that the increase is not that marked if we consider the growth in enrolment. In fact the nominal public expenditure per student in higher education has gone up only by 40% during 1993-94 and 2003-04. In real terms, however, public expenditure per student in higher education has declined from Rs. 8961 in 1993-94 to Rs. 7117 in 2003-4. In elementary education the public expenditure per student has increased from Rs. 825 to Rs. 1229 only during the same period. In Secondary education public expenditure per student has remained almost static during above period at little below Rs. 4000.
TABLE-2
Public Expenditure per Student
Nominal and Real (Base year – 1993-94)
Rs.
Year
Elementary
Secondary
Higher
Nominal
Real
Nominal
Real
Nominal
Real
1993-94
825
825
3748
3748
8961
8961
1994-95
893
793
4040
3588
9821
8722
1995-96
1052
865
4517
3715
9384
7717
1996-97
1220
959
4890
3844
8438
6634
1997-98
1361
1025
5221
3932
9003
6779
1998-99
1654
1175
6285
4467
10238
7276
1999-00
1792
1233
7392
5087
13219
9097
2000-01
1900
1220
7153
4594
13956
8963
2001-02
2047
1269
6699
4153
12099
7501
2002-03
1977
1185
6641
3982
12294
7370
2003-04®
2162
1229
6852
3896
12518
7117
In terms of index of real public expenditure per student, the decline in public expenditure in higher education is equal to 21 percentage during 1993-94 and 2003-04.
Trend Analysis of Plan Expenditure: An Overview
Total Plan expenditure in university and higher education was highest at 28% in the fifth plan. It has been continuously falling thereafter, touching the lowest level in the X Plan.
Source: Annual Financial Statistics of Education Sector 2003-04, MHRD, Govt. of India, New Delhi, 2005.
X plan allocation in elementary education constitutes 65.6% of total allocation for education. Central plan allocations for Secondary Education, University and Higher Education and Technical Education constitute around 10% each. If we take a relatively higher allocation in the last year of X plan and assume that it is realized, then the actual plan expenditure in X plan in elementary education will drastically increase to 78% of total plan expenditure in education, whereas the corresponding ratios for Secondary Education, University and Higher Education and Technical Education will come down radically to 6, 7 & 6 percentage points respectively. In absolute terms there is expected to be a decline in actual expenditure in Secondary and Technical Education in comparison to original allocation in X plan. Even in University and Higher Education there is a possibility of actual absolute decline in expenditure in relation to original X plan allocation if the inflated budgetary provision during 2006-07 remains unspent.
TABLE-3
Central Plan Allocation and Expenditure During X plan
(Rs. Crore)
Scheme
X plan
Allocation
Percent
To total
2002-3
(Actual)
2003-4
(Actual)
2004-5
(RE)
2005-6 (Revised)
2006-7 (B)
X Plan Expenditure
%
To total
Difference (2-9)
1
2
3
4
5
6
7
8
9
10
Secondary
4325
9.87%
578.14
639.08
653.6
859.41
1067
3797.23
6
527.77
Univ.& Higher
4176.5
9.53%
619.14
560.44
789.95
873.27
1403.5
4246.3
7
-69.8
Language.
434
0.99%
103.57
104.11
114.77
105.5
165
592.95
1
-158.95
Scholarship
52
0.12%
0.24
0.16
1
8.37
13
22.77
0
29.23
Book Promotion
67
0.15%
6.26
6.53
5.2
14.09
27
59.08
0
7.92
Plan. & Admn.
70.5
0.16%
5.4
4.65
6.32
5.69
10.5
32.56
0
37.94
Tech. Edu.
4700
10.72%
600.47
626.34
653.31
643.67
930
3453.79
6
1246.21
Elementary
28750
65.60%
4259.29
5203.40
7750
12241.76
16892.5
46346.95
78
-17597
Adult
1250
2.85%
216.33
232.50
250
290
235.5
1224.33
2
25.67
Total
43825
100.00%
6388.84
7377.21
9570.84
15041.76
20744
59122.65
100
-15297.7
Source: Annual Financial Statistics of Education Sector 2003-04, MHRD, Govt. of India, New Delhi, 2005 and Expenditure Budget 2006-07, Volume – 2, Government of India, February, 2006.
The significant point to note is that past trend of plan expenditure for university and higher education of the IX plan continues to prevail during the X plan. During XI plan there is a need to reverse the trend. Interventions made by UGC to achieve the goals of access, equity and quality can mark the impression only if UGC gets a substantial plan funding in higher education. The high absolute plan size of university and higher education during XI plan is of crucial importance.
